OK, FWIW, the editor for 1.7 is nearly as responsive as the one for 1.5.3.
So my problem is pretty much solved.
I still prefer the 1.5.3 version of the editor since it didn't mess with the HTML quite so much. I could hand edit the HTML in 1.5.3 and it would leave the structure alone even if it changed the details.
I like to add white space in between elements of a list so that when I go back to edit it, I can find things more easily. With 1.7, it closes up the gaps again, so making changes is harder. This is still a lot better (for me) than the 1.6.x version, though.
Text editors
HTML Editor Performance in 1.6.2
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