Question:
The ActiveX Zip component (Delphi) slows down Six times, as compared to un-encrypted, if there are above 10,000 files.
Yes, this makes sense. Each encryption will incur an overhead that is normal w/ AES encryption -- namely the AES key scheduling and other zip-specific tasks such as hashing for password verification (which is per-file). The overhead becomes more significant for larger numbers of small files.