This has to be some weird issue on your side, I don’t see any latency on my 1G iPad when playing the drums. (Otherwise there would be little point to the whole application, right?)
I've done another test, this time with the 4yr old and I've now replicated the issue with two different test cases.
It's clear that the ipad is queueing the events and not dropping them if it gets lagged. Under normal circumstances, it's not a problem. But when you have wee monkeys, it does seem to happen with some repeatability.