Yes, on Windows Flash performance is quite acceptable. Try living with it on OS X for a few weeks.
Switching to Core Animation drawing (as in Flash Player 10.1) allows the plugin to draw directly to a backing store in video memory without having to wait for the browser. The plugin still has to request that the view be updated, but it's much faster as it can be done mostly on the GPU.
I'm not an expert on plugins or graphics, but that is how I understand it.