USB 1.1 runs at a maximum bus speed of 12mb/s which is faaaar more than enough to handle the 1mb/s communications between your PC and the UTD. Latency on USB is negligble, depending on how much of the bus bandwidth is being eaten by other devices. So unless you have a set of USB speakers or some other USB hungry devices on the same controller, I can't see USB being slower than the Ethernet on a pure transmission level.
The only issue that could affect USB versus Ethernet reliability, and performance, is how well each of these stacks are implemented in the UTD. If the UTD USB PPPoE stack is poorly designed, it may affect the communications detrimentally. Likewise the case for the Ethernet stack.
However badly either of these two stacks may be implemented within the UTD - unless they drop frames at 1mbp/s rates - there is little chance that there will be much difference in performance between the two, that is directly related to the actual UTD <-> PC connection layer. If there are issues it might be due to the performance of the actual stack on the UTD.