Here is an excellent and detailed explanation of what was going on (BTW, OCZ now offers a free replacement):
http://www.storagereview.com/ocz_vertex_2_25nm_review_oczssd22vtxe60g
Performance went down because OCZ tried to cut costs by having 8 instead of 16 chips (with more NAND die stacked inside each one), cutting down parallelism.
Space went down because OCZ overprovisioned more to counteract the lower lifespan of 25nm. (so, theoretically same lifespan, less space)
The new replacement uses 16 chips of 25nm NAND, and doesn't overprovision more than 32nm did. So you should have identical performance and size as the 32nm, but a lower lifespan... which still is a bit of a ripoff since the price hasn't gone down... OCZ pockets the difference. At least they no longer charge you for the replacement.
OCZ thought nobody will notice and that they could pocket the savings.
The article makes it very clear 25nm is NOT the problem, the problem is what OCZ was doing with it.