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What percentage of capacity does NAND start to slow down?
On the iPad? No idea. Iirc, newer chipsets have a proprietary controller and there aren't really benchmarks for stress testing the storage subsystem on iOS.

Besides, even if there's a difference we don't really know what that would mean for real world use. Using Erase All Content and Settings is often recommended to improve performance on really old devices but it's hard to tell if any performance improvement noted is due to TRIM + more free NAND flash space or if it's primarily due to cleaning up background apps and other crud consuming CPU+RAM resources unnecessarily.
 
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