That is a fair call. The game visual updating slow is not a huge issue but if the input cursor is slow, it is very apparent.

Considering something like Simcity 2000/3000. Visual update is probably in single digits FPS most of the time, but the input cursor is very smooth.

Yes, but this is an unrelated issue. Last game I have seen to not have an "hardware cursor" option/default was a badly made DirectX 8 one that has trouble running on Windows 7.