Appreciate the input, I tried making that settings change but it didn't help. Also, I confirmed that I don't have any project folders open, but am just creating a blank text document and still saw the issue.
HOWEVER, I just found a very interesting data point. If I resize my sublime text window to something really small like 300px x 400px, typing is crazy fast with no delay. If I then adjust the height from 400px to 500px, I notice a very slight but manageable delay if I type really really fast. If I boost the window height to 600px, now the delay is starting to get to the point where I occasionally notice it at normal typing speed. This curve continues, the point where if I make it full screen 1440x900, the slowness is as I describe in my original post.
Just for fun I kicked my native display all the way down to 800x600, however typing was still delayed even at that low resolution settings.
Really seems like the slowness corresponds to the size of the window/how many pixels sublime text is drawing on these green.