If you have bought a video card in the last 16 months or so, the textures will not be a problem. The game engine itself has a problem with polies especially if you are using allot of high poly models. The reason LODs and lower resolution textures are used is once loaded into memory they are easier for the video cards to render quickly. People with machines rich in memory and video memory will see less problem than those with older machines.
They both effect the game though, and they both effect the video.
The video has to process the HUD graphic, the ships polies and then the textures over the polies (this is a very simplified explaination). All this is happening also when the game is processing a map and the AI. So if ou have plenty of memory on your system the effects of textures goes way down, as well as the AI stuff (faster transfer memory to processor then reahead from the HDD). Also believe it or not in SFC the graphic engine renders the whole ship not just the parts showing like in a FPS game.
some simple math:
1024 texture = 3,145,782 bytes
512 texture = 786,486 bytes (4x 3,145,944)
So memory between the two is not much for storage, but when processed the 3,145,782 bytes is transfered over a few clock cycles and then processed as a whole. While the 786,486 bytes are transfered on fewer clock cycles, error check cycles, and are smaller blocks that are easier to process. What does it mean? it means the 4 - 512 textures actually are processed faster than the one large one. Seems not to be the case, but it is, what you have to consider is what works best for what you are doing. Most of the Federation ships used a larger texture on the sauser just so you could get a clean look at the registry numbers, they don't look so great on 512 or smaller textures. You have to look at what details you need to add, or want shown clearly. if the details are low or almost none you might be able to cover it in 256 sized texture. The more details the larger the texture, or the more clearly you wish to see them.
So quick sommary:
Larger textures require more processor and video than samll ones, but less memory to hold them. The object of the texture size is solily to show details, the more detailed the larger the texture.