I experience the same issue.  After system boot, everything is speedy.
Opening some treminals (3-5) with maybe 5-10 tabs each, the system gets very 
sluggish. Only a few of them actually has a lot of output (tail log files, and 
debug output from programs).

Just bought an Intel SSD disk, so this should not be a disk IO issue. 
gnome-termimal process uses 400MiB Memory.
Killing gnome-terminal makes the system fast again.

Eveything is slow, scrolling in Firefox, changing tabs, even writing in
this text field is slow.

Running Ubuntu 12.10.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to vte in Ubuntu.
https://bugs.launchpad.net/bugs/423825

Title:
  gnome-terminal is sluggish when scrolling

Status in “vte” package in Ubuntu:
  Incomplete

Bug description:
  Binary package hint: gnome-terminal

  When using vi in gnome-terminal, scrolling one line down takes about
  one second, which is much too long. This is most apparent when the
  window is fullscreen. Also happens when using less. xterm does not
  have these problems.

  ProblemType: Bug
  Architecture: i386
  DistroRelease: Ubuntu 9.04
  Package: gnome-terminal 2.26.0-0ubuntu2
  ProcEnviron:
   PATH=(custom, user)
   LANG=de_DE.UTF-8
   SHELL=/bin/bash
  SourcePackage: gnome-terminal
  Uname: Linux 2.6.30-020630rc5-generic i686

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