It's much better than expected. Some premilinary results, all with the iPhone 5 (will also test with the iPad 4):
- when mirroring,
a, it mirrors with 60 fps as opposed to the 30 fps-only AirPlay mirroring over an ideal connection (cabled ATV3 and a quality Wi-Fi access point some two metres from the iPhone 5)
b, the lag is, while somewhat larger (83ms (5 frames when playing back a 60 fps video) vs. 50 ms (3 frames)) than with an iPad 3 + (old) VGA / (old) HDMI adapter combo, is still considerably lower than the iPhone 5 + cabled, ideal ATV3 combo (150ms (9 frames)). That is, the lag is almost half of that of the standard wireless AirPlay, while "only" about 40% more than with the old adapters, on previous-gen iDevices (here, iPad 3). Whether this is sufficient for fast action games like Real Racing 2/3 - well, it's on the borderline, I'd say.
- playback of iOS-native(!!!) videos is done on the adapter itself. (In several of my previous posts here, I've emphasized I don't know whether this is the case.) This means videos are played back at true 1080p (I've tested this with rescharts, of course) and at their full quality, making use of the entire screen estate. 60 fps decoding is supported (when driven from, say, It's Playing - you can't synch 60 fps videos to the stock Videos app), so are Apple's CC's.
Will go on reporting / making all this into a full article with comparative lag shots (120 fps videos and the like) so that anyone can check all this himself. I'll, for example, test how much the H.264 decoder is better than that of the single-core A5 in the ATV3, known for not really liking 60p (or >20 Mbps 24p/30p) content. Hope it's better.