Yeah, there's just no way around network latencies no matter what you do with the server infrastructure, unless you count the geographical location of the server as part of the server infrastructure. Of course ping isn't the only factor in play, but when it takes a quarter second from the server tells me that something happens to I see it, and then another quarter second from I tell the server what I did until it receives that, that's half a second lost in network traffic alone, it is definitely a significant part of the latency issue.
Personally, I seem to be seeing a delay of roughly 750 ms between command input and stuff happening on screen when I have about 250ms ping, which seems right, considering the game probably buffers 2-3 frames or something on the client alone (so-called input lag, approximately 50 ms depending on framerate), a bit of processing done on the server (1-200ms?), and another bit of input lag as the results reach my client again.
Being an european player, I would be satisfied if they just added US east coast servers for us "western" players. My latency to east coast servers is around 100-120 ms, which is less than half as much as it is to Japanese servers (250+ ms). US East seems to me to be a good place to put servers, seeing as it would be likely to give most american and european better latencies than we both have to Japan right now, and at the same time let all the English-capable europeans (most of us, really) play with americans.
For those who complain about not being to play with X region players, all they need to do is to not enforce regional servers, so that people could have alts on whichever servers they want. With the pricing models they seem to be going for in v2, it seems like one character per server, up to 8 in total will be included in the price, making it possible to create characters on 7 other servers without paying more than what the basic service costs.

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