What digital bandwidth should I expect?

Just an update: I took my diode completely out and I’m sooooooo happy with the result! It now displays pretty much anything my Arduino can put out, no problem. I’ve been using it all day to debug/optimize a program to drive a TLC5940 and it’s brilliant! I couldn’t have done it with the diode in place…

As for the 5V->3.3 situation: Pretty much every Quad owner has probably fed 5V into their digital inputs and nothing seems to be happening. I also found this quote on this page: http://arduino.cc/playground/Main/I2CBi-directionalLevelShifter

So it seems quite common practice and nobody has problems.