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I've been experimenting with custom kernels lately; I've heard that setting the linux kernel tick frequency to 1000hz helps desktop interactivity, and setting it down to 100hz aids server performance. Would this make any difference for a dedicated minetest server, and if so which one? Also, what about the cpu scheduler? BFS seemed to make an improvement over CFS on my desktop, but idk about a dedicated server. Is there a way to reliably benchmark Minetest's performance?

You will probably have to experiment some with that. Tell everyone on your server that you have to experiment some, find someone to help test the lag on different tick settings, and narrow it down until you find the best setting.

I have tried running minetest with 4 different kernels so far.
- Arch main.
- Arch LTS
- Debian main (crunchbang)
- Debian PAE (crunchbang)

I also tried BFS a while ago, there was no noticeable difference, and BFS is mostly for single core processors (like my P4). With both arch kernels running minetest for 45-60 minutes can freeze/hang my computer. The debian kernels i tried yesterday were even worse.