afaik Io has major performance issues
Anyways, speed isn't the reason he is rewriting Io for the JVM - he wants the advantage of all the libraries already available, as well as being able to fix some small things he doesn't like.
[0]: http://shootout.alioth.debian.org/gp4/io.php [1]: http://iolanguage.com/about/speed/vector/x86/
The vector benchmarks show off the sort of code you wouldn't really write with Io anyway, are three years old, against Python three versions ago.
You're right that Bini doesn't seem to care about performance here, and that's fine. But it's certainly a huge problem for Io, obvious even in small scripts, that would be reason enough to fork it.