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This lecture explains how implementing hash tables with separate chaining can significantly improve performance by distributing elements across multiple lists. By periodically resizing the table to maintain an ideal load factor, the complexity of operations can be reduced to constant time. The instructor demonstrates the rehashing process, where a new table is created and elements are reinserted to ensure an efficient distribution. By managing the load factor within reasonable bounds, the lecture showcases a practical approach to optimizing hash table implementations. The method 'rehash if needed' is introduced to dynamically adjust the table size based on the load factor, enhancing the efficiency of operations like adding and removing elements. The lecture concludes by highlighting the performance benefits of this simplified implementation compared to standard Java library implementations.