Problem solved.
InfoPath has a really tough time rendering a lot of data. Compounded by a lot of calculations and graphical design. I've discovered that at 1000 rows of data coming from SQL, InfoPath will just stop rendering. The form will insert rows correctly, But no data will be rendered after the 1000th or so row. All the data actually comes across fine, InfoPath just cant SHOW it all with all the calcs and the graphics. With this in mind, Let's get back to the subject.
The formatting rules work, yet take forever. This is because I had all the groups showing all of their data at all times. I found once I hid groups on form load, that the performance quickly improved. So I created a couple of rules after the data is gathered that evaluates the number of rows and how many groups it's dealing with. Once the condition is met I hide or show the groups needed. This allows for larger datasets to be brought into InfoPath from SQL without much worry of exponential growth.
Hope this helps someone else out in the future.