I think the answer is in here:
Because of the additional text processing and resolution independence capabilities in GDI+, text rendering is performed by the CPU [2] and it is nearly an order of magnitude slower than in GDI.[3] Chris Jackson, an application compatibility expert working for Microsoft published some tests indicating that a piece of text rendering code he had written could render 99,000 glyphs per second in GDI, but the same code using GDI+ rendered 16,600 glyphs per second.
Games run really slow on my system when using GDI. Unless you're using a super gaming card, I doubt video card much matters here. I don't know why GDI is an option in current MAME. It doesn't seem to be a relevant use.
Regarding the results of your DD use, it would help to know what monitor you're using, and what games are being displayed wonky.