Redshift: Performance wise Is storing delimited values in a single column ever preferable to normalizing them out to another table?
In a word, NO! 

You should not breach Codd's Rules unless you have no choice but to do so.  

I fail to see what performance gains you will obtain by having to parse strings over having an Associative Entity (AKA joining, bridging tables or mapping - amongst others) and using SQL JOINs.  

Most importantly from an RDBMS perspective, this allows you to enforce DRI (Declarative Referential Integrity) constraints on your data. DRI is your friend.

From the link:


  There are old-wives' tales about FKs being unnecessary overhead. This
  notion was kept alive by the fact that (for good, but probably now
  legacy, notably space, reasons) some RDBMSs did not/don't
  automatically create indexes on Foreign Key fields (this should be done in the majority of cases). This led to the mistaken view that Foreign Keys were overhead without benefit which is not
  true for the vast bulk of use-cases!


p.s. you mention that I have seen various posts that suggest that this is not the way to go- where are these references? I doubt if they'll stand up to much scrutiny!