250k means 250,000 bits of data per second.
500k means 500,000 bits of data per second.
When the instructions are sent out the USB port to your light controller at 40 times per second (25 ms timing with Xlights) you can easily get up to 250,000 bits of data per second trying to be sent. If your LOR controller can't receive and process that much data, you'll get apparent lag. Some blame the software, some blame the cable, the controller the USB to serial adapter, but they're all part of the start/finish end points to make the lights do what you want.
Translation: Your wife talks to you at 500k speed, but you hear everything at 250k, and a few seconds later you say HUH? That is the pause/lag/delay in the lights you see.