I don't think the slow scroll is a bug. It's just terrible in comparison to the other two word processors, and given that HiEditor is so good otherwise at handling large files, which is why I have finally dumped my usual combination of NotePad and WordPad now...
Funnily enough, I just tried that long block select on 2 different types of webpage in IE7. While a page on my own site which was 99.9% text scrolled really quite fast (about the same as WordPad did when I tested the big text file in that), one with a really mixed and complicated format of tables and images also scrolled very slowly in much the same way as HiEditor. Equally, the CPU utilisation graph in Process Explorer showed up almost 100% red in the latter test. Maybe it's doing a similar sort of processing to find sizes of the elements to select, which ought to be completely redundant for lines of text with a single line-height...
So if even bloatware such as IE7 can scroll a big text selection quicker than HiEditor, there's something a little worrying about the technique being used. I can't comment on the techniques as I've never written an app that tried to scroll a text window, with or without selection. The fastest method seems to be however Hutch's QEditor does it, which is really astonishingly fast and would definitely be worth studying.