The problem is people are throwing the word lag around too much when most are talking about the position update interval.
Update interval 300ms
avg latency ~100 ms
So by default most people are working with 400ms latency.
One could also factor in human response time to visual input. There was a thread on this somewhere where people were playing a response time game. A lot of the scores people were getting there were around 250ms.
So now we add that to the 400ms
Now we are at 650ms latency.

Lag is a second issue to the Update interval and only compounds it when it happens.
Sure a low end computer/ps3 will show this "feature" off more. But even on my i7 4770, gtx 760, 8gigs of ram the "feature" is in plain sight. While I have very little issues dodging anything; I fail to understand how people can not notice its a thing that SE designed into the game on purpose.