Here's the reason I ask:
Last weekend I had a 4-hour mountain bike race, and during my warm-up, my Edge popped up a Performance Condition of -5. "Dang, that's not very good," I thought, and found it strange because I felt ready for this race and strong on my warm-up. My heart rate was responsive, easily rising, which I interpret as a good thing, because it means I am full of adrenaline and glycogen and all the other things that enable me to ride fast.
Then the race started, and after a few minutes into the race, another Performance Condition message popped up, this time showing -7. It's going in the wrong direction!
After four+ hours, I had had the best race I've had in a while and took the top spot on the podium. I would say I was in peak condition -- exactly the opposite of what my Edge was telling me.
So how does the Edge determine this? My only guess is that it was thinking that because my heart rate was high (due to pre-race excitement), it assumed that I was in poor condition (which in reality for me, is the exact opposite -- when I am fatigued, I have difficulty getting my heart rate up).