> while the screen updates under this setting, it was noticeably slower
than having visual effects set to none (no compiz)

This is expected.  When no composite manager is running, the X server
sends damage events only for the parts of the screen that changed.
Because Compiz uses a much more complex API (OpenGL) to update the
screen, it instead generates damage events that cover the whole screen.
This makes the VNC server have to read back the whole screen instead of
only a small part of it.  When I tried it, x11vnc was much better than
vino about updating the screen efficiently.

-- 
Compiz / vnc screen refresh with nvidia-restricted driver/VirtualBox/ATI fglrx 
driver using X.org
https://bugs.launchpad.net/bugs/353126
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which is subscribed to xorg-server in ubuntu.

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