I don't really get why people are so worried about the latency. The Game/Agent would "know" the exact latency for each player throughout the game and it is the game that controls the output to each player. So, if there's a game for 100 it would be so easy to adjust output according to latencies, and it could fluctuate. Like, in a multi-player if in a specific conflict 4 players are involved, simply adjust the output to balance latencies. The outcome would be far better than what we got now, the only guys who would care are those sitting on 15k worth of specialized gear and broadband (and all those hardware companies). Of course, all this GPU/AI hardware power can be used for other means as well.
If you adjust the game to match the player with a lowest latency, the game becomes unplayable. The problem is not just latency, it is changes in latency. Players can adjust to let’s say 150msec of latency, but if it goes from 50msec to 300msec a second later than back to 50msec, you are screwed and I don’t think there is a way to adjust for it.
Been there. Done it.