Author of the code in question here ...
Not sure how this got off terminals and on to compilers, but here we are.
Having written the profiler I used to optimize this (Sysprof), and a large portion of the OpenGL renderer that GTK uses, I know a thing or two about what code runs in the hot path from VTE. So I could target something that does enough of that to see what should be possible as a best case / upper bound.
That's why I'm fairly confident that adding the rest of the features that VTE has (which is one of the most comprehensive terminal emulator code bases out there) wouldn't affect this particular test case.
That said, I have no interest in doing that. I'd rather just go make VTE fast at drawing and call it a day. I have literally dozens of other projects in GNOME that require my time.