See https://bugs.launchpad.net/ubuntu/+source/qemu-kvm/+bug/524447/comments/5 Apparently increasing the dd block size greatly increases the speed of the domain save operation.
commit 20206a4bc9f1293c69eca79290a55a5fa19976d5 in libvirt git changes the dd blocksize to 1M. This decreased the time required for a save of a suspended 512MB guest from 3min47sec to 56sec.
An additional patch avoids the overhead of seeking to a 1M alignment: https://www.redhat.com/archives/libvir-list/2010-June/msg00239.html
This is included in 0.8.2. In addition upstream QEMU has identified & fixed a flaw that had significant speed impact