Hi Richard,
Yes, they responded very quickly and began investigating the issue. I asked what their progress was in the IE dev chat on Feb 24th:
Q: Any progress on getting IE8 VML performance on par with IE7?
A: thanks to a great test case submitted from the community, we've made some investments here after RC1. thanks!
Well, the fix just wasn't there in the final version. So I asked them again in the next dev chat (which was yesterday by the way):
Q: Just to confirm: am I doing something wrong if I still get terrible performance with absolutely positioned VML elements, or did you just not have enough time to fix it?
A: Simo-- I saw at least one checkin for the VML performance bug that you reported that brought us back into linear performance for this VML creation scenario. I'll follow up with the developer on this to see why you're not seeing the fix.
As of yet I haven't received any further information but it's only been a day, so we'll just have to wait and see.
Oh and by the way the bug is caused by absolutely positioned VML elements. Somehow they're just very slow, assuming they actually have left/top/etc set as well. VML uses absolute positioning a lot, for example all children of a VML group are absolutely positioned and this behavior cannot be changed. The group element also allowed many convenient things such as local coordinate space, but it had to go. Outside a VML group VML elements can only be positioned to full pixels, which just isn't accurate enough. So we ended up creating many VML shapes on top of each other and using the coordorigin attribute to achieve "fake" positioning. This resulted in practically no performance loss because VML - being a vector-based format - doesn't really care about the size of the canvas.
Simo