But all you do when shown that lag is a result of physics [...]
Wow, so you agree on that part. So you want to solve the problem by bypassing physics? Well good luck with that, I'd rather focus on realistic solutions. Things that can actually be done to solve the problem instead of wishful thinking and throwing insults around. The code itself doesn't really suck, it does it's job fairly well after all. It's just simply not designed for a community living half the globe away from each other. Also, due to the game beeing around for 11 years in KR now, there's very little you can do about the coding at this point. You'd have to rewrite it from sratch wich will more likely than not result in the game becoming unplayable. It would be more efficient to produce a new game at that point. The most you're gonna get are safety-net functions that remove the problem source, but that's not what you want after all. So no, what you brought to the table aren't solutions, it's idealistic thinking of how it should be in a perfect world. Reality is different though, instead of praying to god to move a mountain, start digging.
Focus on what you actually can do and compromise.