It is fast, about as fast as switching tracks on a CD.
Haven't really tried the playlist option "for real" yet (I've only confirmed that it works), but then again I only ever listen to 1 playlist in the car. I imagine if you put your 10 favorites in the list first alphabetically (number them 01-Metal...02-Engelbert...etc.) then it won't be as much an issue.
Only thing I wish was different is when the ignition is off the iPod still charges, I'm sure the current draw isn't that much, but I don't think that is an audio link specific thing, has more to do with the head unit.