Logically, there is probably a performance hit for using echo, since it acutally has to parse that code, rather than just ignoring it and dumping it to stdout. However, unless you have an absolutely massive file, it's not gonna be noticible.
Personally, I sprinkle the php code in as necessary due to ease of code and editing the code. I have a tendancy to just do this:
for($i=0;$i<10;$i++) {
?>
The number was "<?=$i?>"<BR>
<?
}
Rather than this:
for($i=0;$i<10;$i++) {
echo "The number was \"$i\"<BR>\n";
}
because it's just easier to edit the HTML. If you have a large form, or complex piece of code, it's just masochistic to try to echo it.