I have about 20 or so orchids in tree fern, mainly because I got several batches from a grower that uses it extensively, but then also bought an additional bag for my own use. They're mostly small phals in 3-4 inch pots.
Several haven't been repotted since (one and a half years), and my observation is that there is very little if any breakdown at all. It does compact down a bit over time, but not to the point where it's an issue. I've seen very little root rot, and the ones that I repotted looked very good when they came out.
I did a few experiments at some point; it seems to hold almost as much water as loose sphagnum, but dries out faster, so requires more frequent watering for me. You may want to rinse or sift it before use, the bag I got had a fair amount of small particles mixed in, which can clog things up in the pot. If you give a good rinse when you water that will wash out over time.
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