You nailed it on the head there mate.
That is the most perfect example of an online mode ruined. Ive been an avid player since International Superstar Soccer on the SNES, and is often the game of choice for "post-pub-banter", but the online mode though is truly SHOCKING. I think "The Darkness" was the only game ive played that came close to the dier lag you have to endure online.