Really late to the discussion here, but I suffered from the exact same latency issues described here. I'd get hit by most red AoEs well after I already moved out of them.

However, by reducing the game's resolution (tho I don't get why overlay/font size needs to be tied to that, it's never been in any other game I played), the latency and lag has since become more tolerable. I've been able to avoid the pain much more reliably, even tho the game's a lot uglier to look at now.

Likely not a concrete solution, but it might help alleviate the issues many of you are having. Hope this helps~