Why the netcode issue exists, and why it cannot be fixed.

[Melithea]

The reasons why SE would choose server dictated live-state:
-Prevents desync bugs (on the server)
-Prevents countless potential duping bugs
-Prevents (in theory) teleportation and other unauthorized client commands from being accepted
-If the player has a good connection to the server, little to no delay is observed by the player

You forgot:
-PS3

Also, the more things the client is put in control of the easier it is to hack and cheat.

Well thank goodness the game is so secure and there are no hackers messing things u- ohhhhh wait.