I completely failed to realise that Xv could turn the incoming video into
textures and slam it at the video card. Obviously if it did that things
would be about as fast as slamming it at the video card without
texturizing it first, with the advantage that modern cards are designed to
render big textures fast.
And, yes, if the thing's doing copies performance will suck. From your
wording it sounds like it's not something fundamental to the hardware :)
When I get another machine to use as a desktop box later this year (so can
afford to restart X on this one without losing all my working state) I
might have a look at that. Someone else will probably get to it first,
though...