> It's got so bad that theoretically "inferior" algorithms can actually be 
> faster due to cache behaviour, even though they take "more operations" to 
> do.

Only "inferior" if you assume they run on a machine that can access every 
single data location and process every single instruction at a constant 
speed.

As you pointed out, this certainly isn't the case and things are much more 
complex now, but that shouldn't put you off trying to optimise your code, 
you should just optimise it to work with the cache first rather than with 
the ALU.

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