Hi Stephen,

I think the network IO you've measured is consistent with the rest of the 
behaviour your've described. 

What I'm thinking is that you're simply reaching the limits of create 
transaction->create a node->complete transaction->flush to filesystem (that is, 
you're basically testing disk write speed/seek time/etc).

Can you check how busy your IO to disk is? I expect it'll be relatively high.

Jim
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