This seems to be fixed now. I am running with n mode and power saving
with no problems as of latest 14.04, more specifically:

jschopp@p55t:~$ uname -a
Linux p55t 3.13.0-24-generic #46-Ubuntu SMP Thu Apr 10 19:11:08 UTC 2014 x86_64 
x86_64 x86_64 GNU/Linux

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https://bugs.launchpad.net/bugs/1289961

Title:
  Power management causes Intel wifi 7260 slowness

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