Classic example of this is a naive markdown preview box that updates on every keypress. As the input grows, the experience becomes more intolerable until you're left typing the post in notepad and pasting it into the <textarea>.
You are only able to look past it here because of the contrived example. Though I found the demonstration intolerable and would hope, as a user of your application, that you wouldn't settle on "meh, the user won't notice/care." Especially since you don't notice it on your developer workstation and I'm stuck using it from my low powered mobile device.