No, I didn't mean the physical flash, but the process - compression does not necessarily slow you down (if you can (de)compress faster than you can read/write, you're actually better off).
When I discussed some loopfile-related projects with Nokia folks it has been suggested that they *did* benchmark it and the internal flash was significantly slower. I would reference it, but it was in an off-list reply so for now you will have to take my word for it unless the original author chimes in
Try starting a larger Qt app on a cloned setup and you'll se the problem - it will read the Qt libs from the card and as it takes up memory start to swap on the same card, resulting in abysmal startup times and several seconds of total unresponsiveness.
This is also one of the main reasons Qt and Python are not optified in Fremantle - so they would not be on the same device as the swap.