Yes, there is a huge space for improvements there, besides sup-par speed, strange filtering and ordering, unintuitive focus management … but at least it is there and has chance to evolve. I'm quite convinced, that even five seconds delay of (each) command palette invocation is most of the times better than mindlessly sifting through menus and keyboard settings. And as always, the "happy path" is to to use it just once and memorise the direct shortcut of desired command, so next time there will be not use for the palette.