I added the ppa, Upgraded the following packages:
fglrx-modaliases (2:8.723.1-0ubuntu4) to 2:8.762-0ubuntu0sarvatt
intel-gpu-tools (1.0.2+git20100324-0ubuntu1) to 
1.0.2+git20100830+c935c60-0ubuntu0sarvatt
nvidia-current (256.53-0ubuntu2) to 260.19.04-0ubuntu0~xup2
nvidia-current-modaliases (256.53-0ubuntu2) to 260.19.04-0ubuntu0~xup2
nvidia-settings (256.53-0ubuntu1) to 260.19.04-0ubuntu0sarvatt

and switched back the font settings to "Subpixel Smoothing (LCDs)",
and...

the problem hasn't gone away.  There is still a clear speed drop in,
say, simply scrolling text in the command prompt.

-- 
nvidia 256.53 xorg-server 1.9.0 performance regression with antialiased text
https://bugs.launchpad.net/bugs/629910
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