First of all the Model 3 mid range has a shorter range, is a lot slower and comes standard with simple "aero" wheels. But beyond that, Youtube channel Engineering Explained discovered an important difference between the motors, permanent magnet vs. induction motor.
All Model 3s come with a Three Phase Six Pole Internal Permanent Magnet Motor in the rear, which can output roughly 280hp and accelerates the car 0-60mph in around 5s vs. 3.2s acceleration of the Performance configuration. OK, cheaper car means slower acceleration, but there's actually some physics behind the difference:
As Jason in the video explains, this permanent magnet motor is more efficient and cheaper to make, BUT it suffers from torque ripple at certain low RPMs, so Tesla solved this problem by staying under maximum power in these RPM regions, thus slowing and delaying the acceleration by a significant percentage.
The Model 3 Performance has two motors: the same permanent magnet motor in the back and an induction motor in the front. This allows the motor controllers to "fill in the gaps" of the rear motor torque by increasing front motor torque, so the end result is one continuous, quick and smooth acceleration.
That being said, Tesla Model 3 is a mass marker car, so the cheapest configurations will be bought by first time EV buyes or owners of much crappier EVs/Plugins/Hybrids. The majority of customers will be fully satisfied by the cheapest rear wheel drive Model 3, while petrol heads and enthusiast should definitely choose the dual motor configuration with or without the performance package. Both options have significantly improved acceleration and handling.