https://www.youtube.com/watch?v=ymei7UwBgX4
Looks like it's running a pretend-terminal website which probably explains the latency (the Kindle does not have a fast processor).
Way on the other end - here's a Dasung 13.3" eInk monitor (i.e. you feed it DVI and it handles all the display driving for you). It can be yours for a cool $1000. I'll pass, but it's looking pretty good even for GUI usage. Probably uses more power than a purely embedded solution could, though.
My method was extremely rudimentary - inotify -> long-polling JS (being fed entire new file) -> innerHTML rewriting, with the Kindle connected over 802.11g - but hitting Save in my editor produced updates on the Kindle's display in around around 20-40ms.
I would put a moderate amount of money on the possibility that the latency is coming from the fact that the terminal app in the video is being run on a non-local server, and that keystrokes have to go up to the cloud-hosted app and then come back down to get onto the Kindle's display.
If the whole thing were local (with the terminal app hosted on target system, ideally) I expect updates could happen in <100ms.
Also, the CPU is a 1GHz i.MX6 (@ 996MHz), next to 400MHz LPDDR2 (@ 396MHz). It performs quite well in my experience; it's the OS that's terrible. :P
(The best OS I've yet seen was the one on my Ericsson MC218, which let me drag windows around the display faster than the LCD crystals could physically keep up. Solid windows, not outlines. On an ARM7TDMI running at 36MHz.)
Actually, depending on what you are doing, the nostalgia-induced slowness might even be intended.
That'd still be painful for interactive use, though.
An article on here a little while back goes into detail about how even very small latencies affect the typing process: https://news.ycombinator.com/item?id=10787812
[1] Yes, I know it takes longer on an e-ink display to refresh the entire screen than to update a single character. My point is that page turning speed is thought by most to be unimportant, but being used to PC interfaces with fast response times made it unbearable to me, especially when I was skipping through pages trying to find something.