My Windows 7 machine has a quad core i7 processor. When I Rebuild my project, it takes on average 25 seconds. And when I launch the app, it takes on average 36 seconds (before
As stated on the tracker page for this issue, the team has identified this as the problem:
--parallel-threads only applies to project parallelization.
For android tasks that are running in parallel, we always create as many threads as possible
From the page, it seems that they target release 1.3 to address this (see comment #13 there).
In the meantime, what has helped me to cope on Windows 7 is to set the CPU affinity for the Android Studio process (and its child processes) to spare at least one of the cores (as suggested by comment #9 on the page).
There are many ways to do this, but you might want to try the top-voted answer on this superuser question (which suggested to use Process Lasso) that appears to work well enough for me.