Funny, this is what I had ready to post just while finding the above.

According to my tests, it seems to me that the problem is not that the 
interface is set to "rate 1M", but to "rate auto", and that this automatic 
bitrate adjustment mode is broken, setting rate down to 1M.
Hence, I have put this script in /etc/network/if-up.d under any name.

#!/bin/bash
# Only for wlanX...
[[ $IFACE == wlan* ]] || exit 0
iwconfig $IFACE rate 36M

to use a fixed bitrate. 54M is not necessarily the best value and you'll
have to experiment, these were my rough results.

54M 140 KiBps
48M 170
36M 190
24M 180

It continues to be a mystery why the transmission rate is so low and still 
varies more than surrounding noise can explain (packet size adjustment? but 
that's sending side matter).
Anyway, doing away with having to compile the divers to continue each Ubuntu 
installation is excellent work.

-- 
Ralink rt2400 / rt2500 / rt2570 / rt61 / rt73 do not work out of the box in 
Gutsy/Hardy
https://bugs.launchpad.net/bugs/134660
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