MONSTROUS POST AHEAD, BE WARNED

True. SD is always less efficient than internal flash. I created a second EXT3 partition and swap on my card just for testing purposes. It is recommended to create swap files on internal flash. It is faster, but like TWK says, not much.
Here's how much faster ( card is faster in cache reads, while internal flash is faster in raw speed disk reads ):
SD Card:
# busybox hdparm -Tt /dev/block/vold/179:1
Timing buffer-cache reads: 106 MB in 0.51 seconds = 210812 kB/s
Timing buffered disk reads: 37 MB in 3.05 seconds = 12407 kB/s
Internal Flash:
# busybox hdparm -Tt /dev/block/vold/31:9
Timing buffer-cache reads: 16 MB in 0.53 seconds = 30355 kB/s
Timing buffered disk reads: 47 MB in 3.03 seconds = 15867 kB/s
We use so little of swap, that I decided to leave it on the SD card, just to cause less wear and tear on the internal flash.
Click to expand...