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That sounds like Rhapsody/Mac OS X Server (which would have been Platinum). And it is, indeed, quite snappy. I have it on a Wallstreet G3 and it runs very well.

The aqua interface first shipped in Mac OS X Developer Preview 3. So they could be referring to DP2 which had a platinum like interface but was released after Apple had moved on from the rhapsody concept.

That sounds about right.

It was a while ago, so my memory is fuzzy.

The slowdown was probably the switch from Display PostScript to Quartz.

A quarter century of Moore's Law smashes that from "small problem" to "utterly nonexistent problem."