While working on getting the accelerometer to aid the update rate when averaging is enabled, it was discovered that the distance measurements themselves weren't occurring as fast as they should.
It turns out the original Atmel libraries for ranging had quite a large arbitrary delay set (100ms) between each distance calculation for display purposes. This delay has now been removed and it now effectively doubles the measurement rate. This in turn halves the amount of time it takes to reach a desired result, when averaging is performed across a large number of samples. So if you look at the current demo video again, just imagine it running at twice the speed.
How exciting is that!? Free hardware upgrade!
New demo update: