I know that virtual functions have an overhead of dereferencing to call a method. But I guess with modern architectural speed it is almost negligible.
You forget one thing. The overhead is also in memory, that is you add a virtual table and a pointer to that table for each object. Now if you have an object which has significant number of instances expected then it is not negligible. example, million instance equals 4 Mega byte. I agree that for simple application this is not much, but for real time devices such as routers this counts.