I also ran into the same problem on LUbuntu 10.04, which increases big file 
transfers times with hours.

Could it be that sftp from Nautilus selects a different cipher for its 
encryption?
Presumably des (the default protocol 1 cipher), judging from the speed drop
compared to plain sftp?

For full details see this posting:
http://ubuntuforums.org/showthread.php?p=12275118#post12275118

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https://bugs.launchpad.net/bugs/250517

Title:
  gvfs performs slowly on bulk sftp transfers

Status in The "G" Library - GLib:
  Confirmed
Status in “glib2.0” package in Ubuntu:
  Triaged

Bug description:
  Tested on a low-latency 100Mb fibre link. scp/sftp console clients are able 
to hit the line speed of around 10MB/s. Copying via Nautilus is almost 10 times 
slower, at about 1.6MB/s.
  This seems to be because it does not batch up writes, but waits for a reply 
for each.

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