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Of course the Droid is better... the ally is not a "high end android device" it would be better compared to the Eris or devour. Its a mid level smartphone. Cheeper processor and other parts.
The LG Ally is using a dated Qualcomm processor, the same found in the Motorola Devour, which is nowhere near the processing power of the Moto Droid's OMAP 3430. There is also the lack of a dedicated GPU and the DSP in the Droids' OMAP is also a far superior piece. You have to remember clock speed is NOT the only defining factor. In this case you found out first hand. The Ally while definitely NOT a bad phone for a mid-range device is not in the same league as the Moto Droid/HTC Incredible.