Earlier quoted context omitted.
This might be one of those things like monitor refresh rate where you can only really tell the difference if you've experienced the better version for a while, but I haven't ever felt slowed down by the speed of VS Code.
Every now and then I switch back to Apple's Terminal app, and I'm blown away at how much faster it is at just typing than iTerm it is, and how much nicer that is.
A few months ago I switched to WezTerm and, after some config wrestling, I've been very happy using it (https://github.com/bbkane/dotfiles/tree/master/wezterm).