Glad you got this improved! I'm not sure how much room for improvement there is here - I just checked and it seems that the WiFi stack should be able to send data out in ~530 byte chunks, so it should mean data from the file goes straight out.
Without digging down (you could attach a USB-TTL converter to the ESP8266 RX line and look at what's being sent and when) it's hard to know where the slowdown might be.
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