Right now the process that we're using for inserting sets of records is something like this:
(and note that "set of records" means something like a person's record along with their addresses, phone numbers, or any other joined tables).
Should we be doing something more like this?
After having some issues with ORA-01555 and reading a few Ask Tom articles (like this one), I'm thinking about trying out the second process. Of course, as Tom points out, starting a new transaction is something that should be defined by business needs. Is the second process worth trying out, or is it a bad idea?
A transaction should be a meaningful Unit Of Work. But what constitutes a Unit Of Work depends upon context. In an OLTP system a Unit Of Work would be a single Person, along with their address information, etc. But it sounds as if you are implementing some form of batch processing, which is loading lots of Persons.
If you are having problems with ORA-1555 it is almost certainly because you are have a long running query supplying data which is being updated by other transactions. Committing inside your loop contributes to the cyclical use of UNDO segments, and so will tend to increase the likelihood that the segments you are relying on to provide read consistency will have been reused. So, not doing that is probably a good idea.
Whether using SAVEPOINTs is the solution is a different matter. I'm not sure what advantage that would give you in your situation. As you are working with Oracle10g perhaps you should consider using bulk DML error logging instead.
Alternatively you might wish to rewrite the driving query so that it works with smaller chunks of data. Without knowing more about the specifics of your process I can't give specific advice. But in general, instead of opening one cursor for 10000 records it might be better to open it twenty times for 500 rows a pop. The other thing to consider is whether the insertion process can be made more efficient, say by using bulk collection and FORALL.
Some thoughts...
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