Thanks for confirming what I suspected. Apple removed the effect because they wanted to. After all at that time they were selling the iPad 4 so that would have knocked down the sales of that. It's the same thing with the iPad 2.
I definitely remember at the time, with beta 3 of iOS 7 that it ran much better on the iPad 2 than the 3 - it caused lag and other issues. It probably runs reasonably well with 7.1 jailbroken because at that point Apple had put a lot of time into bug fixes etc.
Unfortunate though that they didn't leave it in to allow for the user to decide...