I was 'shocked' to discover a few months back that, when I made the horrible mistake of starting a job that wasn't easily Ctrl+C killable and dumped a lot of output to the screen, I was better off paging to antoher desktop and waiting for it to go away, because the limiting factor to the data-dump wasn't the bandwidth between my machine and the remote, nor the buffer size of the terminal, socket, or whatever else in between, but the
speed at which my terminal rendered text, which was rendered moot by being on another desktop where the text didn't need to be rendered and the xterm (or also iterm) session could page-past that text without disturbing my desktop display.
It makes a lot of sense. Much goes into your text rendering beyond what was necessary in your VT100. Every screen I see is anti-aliased, horizontally and vertically aligned, with 'lines' of text that can wrap or be colored or myriad other things according to the byzantine and arcane standards of the escape codes and ones that have come after. Re-drawing even a fairly large amount of text is fairly non-trivial cpu and gpu time. I found I got way better performance and less lag from my machine if I disabled the alpha transparency on my terminal windows. Processing power is very high, but still far from unlimited.