for some versions of terminal the font rendering has become very slow and choppy esp. when the window is a bit larger and much text is printed, for example while compiling apps. when i enable the xfwm4 compositor, it's fast again. vte version is 0.14.1, terminal and xfwm4 are latest svn. i don't use a transparent background but a solid black. the used font is monospace.
That's something for VTE then. Maybe the VTE guys are optimizing for composited desktops.