With Autogrow on, the database is already as big as it needs to be
(depending on how long it's been since the last restart). The size of your
application database is not really relevant unless you're doing thins like
sorting in tempdb. Even still, autogrow has already made tempdb as big as it
needs to be. Why are you blaming tempdb for your sluggish performance? Are
you noticing that many waits while tempdb is resized?
That said, however, as Erland put it, 200 Mb is nothing. Go for it. Then
monitor it for a while to see if it remains at 200 Mb.