The lag spikes exist, and they're random as hell. Funny thing is some people simply don't experience them AT ALL while I'm having lag spikes that last 5-10 seconds every couple seconds. It makes the game completely unplayable and even crafting is super annoying, since you wait a couple seconds for the game to react to the actions used. This isn't a problem with my internet connection, it's either something messing up the routing along the way to the servers (which would explain why some people don't experience them) or SE servers themselves.