AROS hosted isn't slow at all.
I would assume, pedantically I may assume it, that it would be slower then AROS native, not meaning by it that it was slow at all
What does that mean?
That if AROS isn't hosted it bangs for the metal whereas on hosted it doesn't, or atleast it uses linux ones (it was mainly a reference for using swaps memory from linux). On native the resources needed for Linux are gone and only those of AROS are taking into consideration
If it's not the best solution, why develop it at all?
Because the world isn't flat, and if it isn't the best suited tool for one job it might well be for another... take linux, it might not be the best tool for desktop but it is seen as such server wide