I don't see what's bad about Fraps.
For me, it reliably records high quality video and audio (which has never been out of sync in my experience), it's useful for monitoring framerate and it's my first choice for taking screenshots in games. It works in just about every game I've tried it with. I don't think these gripes are valid.
3.9GB cutoff - If your long video is split into several parts, jam them together in a video editor, problem solved.
Large file sizes - Compress them in a video editor.
Performance problems - Comes with the territory. When you're recording high-res video and saving it to disk while running a game which is likely to also be system intensive, performance is bound to suffer to some degree. I personally run all my games on a primary HDD and save videos to a secondary HDD, and I usually only get a hit of about 5 FPS when I record.