For what's it's worth, I'm running nearly 5000 channels of LED Flexstrip on LSP on a Laptop, Win7 64 bit, i7 Quad core, 8Gig RAM and dedicated graphics cars with a solid state drive.
I did try LSP on a Core 2 Duo, 2Gig RAM, i7 laptop and the time to generate effects was pretty bad, it took a minute of so to add in a single transition across the flexstrips when sequencing, so that wasn't going to fly.
Generating a single effect (using one of the color slider macro) across all the flextrips takes about 10-15 seconds on the Quad core Laptop, so even on the higher end machine sequencing can be quite slow.
Looking at David's machine, I believe he's using an HP z820 machine, so that's an eight core, workstation and hence why his effects get generated in a few seconds.