Battle speed is fine. Right now it's too fast for the lag.
However NPC characters do load unacceptably slow.

For gameplay purposes NPC characters should absolutely take priority over drawin other players warping around.
I have waited hours for chocobo porter/shop owner/levemete/guild npc to show up meanwhile the screen shows an army of bunnyhopping online players. Sometimes while this is happening ps3 still hasn't processed half of the architecture surfaces and the textures are still in the low LOD form.

Fix it now please.