Thank you for the runnable example.
There are certain browser- and system-specific limitations, regarding the number of rows/items that can be rendered simultaneously in the Grid, beyond our control.
The Angular framework also imposes some performance penalties.
The most straight-forward options for improving the performance and rendering times of the Grid, are to enable production mode (Angular - related):
... and to utilize either the paging or virtual scrolling functionalities of the Grid (Kendo UI - related):
In the discussed scenario, filtering itself does not take long, but rendering all resulting rows is time and resource-consuming.
Performance can be significantly optimized via the approaches, suggested above. Here is an updated version of the plunker with enabled production mode and paging:
I hope this helps.