There on-demand is a early release of our well known intellidemand. Interactive is easier to tune. It could be the thermald or thermal-engine kicking in to throttle it from heat lg has very aggressive thermal throttling on this phone. When kernel source drops most of this lg based lag can be fixed.
Check out the files I posted in the tmo development forum.
Galaxy nexus ROM: EOS 3
Nexus 7 ROM: EOS 3 KERNEL: _motley
Sprint epic 4g touch