Whatever is causing the positional lag and whatever excuses SE comes up with it's just going to be that - excuses.
I've played games with servers across Atlantic, I've played ones with servers in a middle of nowhere (read: SEA countries), and never in the past decade have I seen such poor network code, not even in the worst cases.
If SE thinks it's all fine (hey, maybe it *is* fine for JP players, I dunno) and we're *supposed* to smile and play a game built around tight movement and pray that laggy positioning update doesn't kill us in the process, I can't see this whole thing lasting. Not with the amount of competition on the WoW-clone market.