When I raised this back in August,  I could not resolve the performance either 
with Ubuntu drivers or Intel.  It just seemed upping the kernel from 4.6 
upwards stopped the performance. You don't have to upgrade to 16.10 to see the 
issue. 
Any way tried to upgrade 4 weeks ago incase the issue had resolved it's self 
with kernel 4.9 and nope it's still there. 
 Original bug: 
https://bugs.launchpad.net/ubuntu/+source/intel-vaapi-driver/+bug/1612863

Currently back on kernel 4.6 everything is good again.

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https://bugs.launchpad.net/bugs/1632165

Title:
  modesetting driver unbearably slow on intel graphics

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