First point here is Win7 is not XP, it may well be that a lot of programs you have, even those classed as essentials with XP will not be needed. Win7 has a lot of facilities built-in that was an addition in XP
The vast majority of correctly written programs, written for 32Bit XP will work on Win7 both 32 & 64Bit, directly, This would exclude any system level programs, as the system architecture has been completely re-written.
Games can be a problem due to the fact that game developers, especially back in XP days, tended to use shortcuts in their programming to squeeze the last bit of performance from the operating system, A lot of these practices were well known and are catered for in the design of win7, but not all
XPMode is designed to enable Business users to run bespoke software that is not compatible with win7 until the software can be re-written. Saying that, it does a good job of running the small amount of software that will not run in win7 natively, and can run them seamlessly to the user, appearing to run in the native win7 environment.
Running XP programs on modern hardware will always be considerably quicker than running them in XP mode. Of course as the programs were designed to run on XP era hardware it is often the case that they will run as well in XPMode as they did on the original hardware