This example uses soft-clipping which is completely unusable on anything older than iPhone 4s (think iPhone 3G, iPhone 3GS, iPhone 4, iPod counterparts of those devices such as your iPod 4 gen, iPad 1).
This is because of the use of a pixel shader that performs pixel blending on nearly all screen's surface. As a side note, since hard clipping is implemented in the same manner, you will not notice any speed bump using it instead.
You can try to convert the example so that it uses a draggable camera instead of a draggable panel : you'll get fast hard clipping.