It would be interesting to see how top tier dogfighters (karthik, pog)
would do playing in a very high latency scenario (say 500ms) and with
1% ploss.

I think a different skill set is involved when one plays under such
circumstances. I've noticed this myself playing on dialup for years.
Your brain might know what SHOULD happen under ideal conditions but
due to network factors you must add an additional layer of calculating
and over time you learn for example the difference between
deaccelerating from maxwarp at 300ms versus 30ms, in particular I've
noticed phaser accuracy is very much affected by high latency. Packet
loss in the 2 to 3% range adds a whole other layer of complexity as
well.

Zach