This problem is edgy because many people don't understand how it works and just get used to it, thinking it's normal. The latency however is a real issue which i'm suspecting isn't only caused by the server location, but also by the game software and the kind of servers SE is using. Whether the game is international or not these sorts of latency issues are really not supposed to be there in an AAA mmorpg or, at least, not so heavily.

I'll just mention that when SE started recruiting server staff right after the start of FFXIV service, solid knowledge of chinese language was a requirement for application. I'll let you make your own conclusions about that.