What I don’t understand here is how missing a frame deadline in this situation (<1/60 of a second or 16ms) is intolerable when typical network latency varies constantly by much more than this. It seems to me that if the latency requirements were this strict you could only support LAN multiplayer.
The only scenario I can imagine is some interactive game installation at Disney/etc. But there'd still be no actual benefit over an architecture more lenient to timing deviations.