When the current directory is outside of the repository we need to turn
everything into absolute filesystem paths in order to compute correct
relative paths.
This was previously done unconditionally, but is not necessary when
the current directory is inside the repository.
With this change rhg files > /dev/null at the root of a mozilla-central
snapshot goes from ~150 ms to ~70 ms. My repository is located at a
somewhat long path though (93 bytes). The effect may not be as pronounced
at a shorter path.
Looks to me that the if/else logic could be smaller, and the actual loop written only once after.