I was wondering if a CPU's performance would degrade over time and
use.
In a word, no. Or at least not if it's operating at all properly.
There are some situations where it might be slower, one that jumps to
mind is if the cooling mechanism on a P4 becomes severely degraded
(heatsink clogged with excessive dust or a fan that just isn't working
quite right),then the processor might start to overheat and slow
itself down to prevent damage. However this isn't the processor
"degrading" in any way, it's you're cooling solution that's degraded
and your processor is trying to compensate. Of course, such
situations are VERY rare, usually if you're cooling setup isn't
working right then you're computer will just crash.
Would it lose clock speed?
No
Why would it do that?
It wouldn't, though it might FEEL slower for a variety of reasons,
some technical and some more psychological. On the technical side,
the big problem is that processors have to do more with newer software
to implement the new features.
The psychological side is probably MUCH more important here though,
but I'm not sure that I'm the most qualified person to talk about it!
Of course, BY FAR the #1 reason why a computer will feel slower these
days is spyware. CHECK YOUR SYSTEM FOR SPYWARE! Those stupid flashy
adds that say "9 out of 10 systems are infected with spyware and
adware" are NOT bullshitting (err, at least not on that part, they are
bullshitting when they try to sell you some crap), the problem really
is that severe.