PDFs work as expected on my Kobo Wifi, whether on the reader or on an SD card. Can you post steps to reproduce the problem? Also, there is a 32GB limit on the size of the SD card , just in case you're trying to use something bigger.
Yes, the Wifi is slow... The Touch introduced a faster screen and a faster processor which (as PeterT points out) also allows you to use the newest firmware.
Speaking of firmware, I wouldn't suggest trying to update your Kobo to a later version. There are endless threads here requesting images to resurrect Wifi's bricked by 1.9.11.
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