In addition to all of this, I'm not asking for client side ninjutsu execution - simply the selection of which ninjutsu to execute (mudra combo).

Actually exactly what Callinon mentioned (started typing this before reading his post).

I honestly can't remember the last time I failed a mudra due to player error. The last time would be when I randomly hit "Q, E or R" (my mudra keys) while idling or pre-fight waiting for afk'ers (which happens occasionally)..

Only Ninjas have any clue how infuriating it is when the mudra appears to activate (the CD rolls around, the animation displays 3/4 of the way as you're queuing your next mudra) only to find out that the 2nd one didn't actually activate due to random packet loss. Other jobs can "feel fine" and not laggy, but as soon as you switch to NIN which has 0.5sec CD on mudras, the packet loss/latency sticks out like a sore thumb. Mudra fails due to latency/packet loss is absolutely crippling for a competitive NIN. So much so that a fellow Australian that likes NIN opted to avoid re-capping it this patch as it relies so much on latency..

Even IF there was third party software for mudras, I would opt not to use it. To begin with, due to fight mechanics the choice on which ninjutsu to use varies, as well as the timing of certain fights (such as disconnects or invuln timers). I would much rather hit 3 buttons in sequence than find additional keys to bind each ninjutsu.

Finally what is stopping people from writing scripts (aside from the ToS) for mudras anyway? It's not like it would be impossible to write a simple external macro or hotkey that inputs each mudra combination in there for you. (Why you would do this I have no idea).

Again, the "possibility to cheat with mudras" is such a weak excuse to put every ninja who has suffered from any form of latency or packet loss through this pain.

The problem is certainly more evident upon new patches (as the servers always struggle), however it is definitely an on-going problem.