Yes, KA-equipped locomotives slow dramatically when they hit a section of unpowered track. A typical KA drops voltage very quickly and you will see that in the speed of the locomotive since it is by far the largest current draw between motor, sound, and lights.
Ring did a really nice job with their KA (the PBM-2) because it's not just capacitors like everyone else. They added some electronics to keep the voltage mostly stable when power is totally lost. You will still notice a slight drop in speed, but not anything like a normal KA. All my KA's now will be Ring's PBM-2.
-Kevin