I am serious. I'm a big FPS player and if ever we had the precision of WipEout HD's prediction code in any of those FPS games it would simply be unplayable online (See: The Darkness). There's no excuse like "oh it's only a racing game so it doesn't need to be as precise"... yes it does! Motorstorm, a launch title for the PS3, has better prediction code than this... I'm telling you, make the prediction code better and more precise and you wouldn't have any problems at all with ship lag.
It was fine on the PSP because it's a small console, but for the PS3 I find it's absolutely ridiculous. WipEout deserves better.