The issue manifests, as soon as I start to access websites.

Precise kernel is rock solid on around (10mbps internet traffic):

wlan0     IEEE 802.11bgn  ESSID:"Kxak"
          Mode:Managed  Frequency:2.432 GHz  Access Point: 1C:7E:E5:30:E3:DC
          Bit Rate=65 Mb/s   Tx-Power=15 dBm
          Retry  long limit:7   RTS thr:off   Fragment thr:off
          Power Management:off
          Link Quality=43/70  Signal level=-67 dBm
          Rx invalid nwid:0  Rx invalid crypt:0  Rx invalid frag:0
          Tx excessive retries:1014  Invalid misc:78   Missed beacon:0

3.4.0 has throttled, and I am getting time outs on my websites: (Interesting 
see Tx-Power, its 0 here)
wlan0     IEEE 802.11bgn  ESSID:"Kxak"
          Mode:Managed  Frequency:2.432 GHz  Access Point: 1C:7E:E5:30:E3:DC
          Bit Rate=1 Mb/s   Tx-Power=0 dBm
          Retry  long limit:7   RTS thr:off   Fragment thr:off
          Power Management:off
          Link Quality=45/70  Signal level=-65 dBm
          Rx invalid nwid:0  Rx invalid crypt:0  Rx invalid frag:0
          Tx excessive retries:280  Invalid misc:615   Missed beacon:0

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https://bugs.launchpad.net/bugs/994104

Title:
  Wireless performance issues on kernel 3.4.0-1-generic (iwlwifi)

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