I took these measurements over HDMI while bypassing my receiver, so this lag is the just the lag inside the AE7000. 2D, Cinema 1, Frame Creation OFF.
Frame Response set to Normal: 91ms
Frame Response set to Fast: 81ms
This is actually a fair bit laggier than my AE4000, but still acceptable. Also, the difference between Normal and Fast is pretty pointless. 10ms? That's well below the threshold of what a human can notice. Maybe there's some advanced setting that really turns up the lag and setting it to Fast counters it, but for now it's a mystery why they bother adding in an option with an unnoticeable effect.
For giggles, I turned 2D->3D conversion on and measured the video lag. I was expecting seriously bad results, but here's what I got:
Frame Response set to Normal: 120ms
Frame Response set to Fast: 113ms
Same ~10ms difference between Fast and Normal. Again, rather pointless. Either way, 2D-3D conversion doesn't add as much lag as I suspected it might. There also is no difference in the lag between the various modes of 3D upconversion. They all registered the same.
Now, what about frame creation?
Frame Creation Mode 1: 89ms
Frame Creation Mode 2: 89ms
Frame Creation Mode 3: 89ms
Interestingly it appears frame creation is always on, even when set to off. I don't think this was the case with the AE4000. Probably has something to do with having to run the panels at 240hz or 480hz constantly. So some level of frame creation is always there, even if it's just repeating frames as-is and not doing any sort of tweening or interpolation. The shock is that the modes don't add any lag. With the AE4000, mode 1 added about 75ms of lag and modes 2 and 3 got worse, with mode 3 adding something like 250ms of lag. Whatever image processor chip they're using in the AE7000 is orders of magnitude faster.
One thing to remember about this is that there's additional lag being added by the round-trip wireless signal to the controller that's doing the measurement. However, because that stays the same during all the tests, the numbers are a good reference against each other. The actual raw latency numbers are probably 15ms to 20ms lower than these here, though, because of this effect.