NI talks about this particular issue in the LabVIEW Performance class. When you overlay controls, the LabVIEW execution engine must "redraw" ALL overlaid controls every time either of the controls are updated. It the situation you mentioned I would suspect one or both of the overlaid controls were updated frequently. If so, then the Google Earth ActiveX would be executed at the same frequency. I can see where that might chew up some serious processor cycles.
If you could move those controls to a different area of the UI, you would likely see an improvement in the performance.
Jason