OK, I just went to an Apple store and checked out every notebook. All of them (including the most expensive 17") do the same thing as my machine, except the 13" models (maybe because they run at a lower resolution or maybe they have some different CPU throttling).
AC Plugged in ("Higher Performance" set):
- Dock positioned on bottom, 2 Finder windows = choppy Expose
- Dock positioned on bottom, many Finder windows = smooth Expose
- Dock positioned on right, 2 Finder windows = smooth Expose
- Dock positioned on right, many Finder windows = smooth Expose
Running on Battery ("Higher Performance" set):
- Dock in any position, any number of Finder windows = choppy Expose, with possible smoothening after the second or third time of calling Expose
Doesn't make any sense, this sort of thing shouldn't happen on a $2000 laptop with 4GB RAM and 2 friggin video cards(which is why I picked this model over the cheaper one without the 9600M GT). I think they took the CPU energy saving idea too far. But at least now I know its not only my machine.
In addition, I have Windows 7 Release Candidate (64-bit) installed, and it too has variable smoothness when opening/closing/maximizing/minimizing windows.
To respond to the above, I did the hardware diagnostics and there were no problems.