TheSmokeMonster wrote: "to the person who has 3gb of ram, you might want to consider upgrading to 4 or more. In general if you want faster speeds and your computer supports more ram, then give it more RAM."
This is excellent advice in general, but in this case I can't help thinking it's a bit off the mark: I doubt these cases of extreme slowdowns, which seem to be popping up with some regularity, are RAM-related. I myself own two older machines, one maxed out at 3GB and one maxed out at 2GB, and both run Lion flawlessly.
It seems far more likely that either:
1. A small percentage of installations are hosed in a very specific, similar way, or
2. Some system extension (similar to your experience with DisplayLink) is marginally incompatible with Lion, and is the cause.
While we can all agree that such slowdowns are not commonplace -- if they were, the tech press would pounce on it, the way they pounce on any widespread Apple flaw, e.g, Antennagate, OS X's original instability, etc. -- it now seems disingenuous to claim the problems are confined to underpowered hardware, either.