In this paper, we study the deployment optimization for an extremely large-scale intelligent reflecting surface (XL-IRS) assisted multi-user communication system, within which the channels between the XL-IRS and the BS (or user) are modeled by the near-field spherical wavefronts. To draw some valuable insights, we first consider the single-user case, where an alternating optimization (AO) based algorithm is devised to maximize the received signal-to-noise ratio (SNR) at the user. To address the high computational complexity issue incurred by the AO based algorithm, three approximate received SNR expressions are obtained to yield useful insights, corresponding to the upper bound, approximate expression, and closed-form. It is demonstrated that the XL-IRS ought to be positioned near the user (rather than the BS) to obtain a higher beamforming gain. Then, for the multi-user scenario, an efficient algorithm is proposed to obtain a high-quality XL-IRS placement solution by using the AO and successive convex approximation (SCA) techniques. Furthermore, the effective degree of freedom (DoF) of the BS-IRS channel is provided, which indicates that the additional effective DoF can be leveraged to improve multi-user spatial multiplexing. Last, numerical results confirm the existence of a trade-off between near-field beam-focusing gain and multiplexing gain.