Well we always had laggers, probs even worse ones in PvP who would forcefully lag at times and otherwise have a stable connection.
ES makes it more frequently yeah, but like Creska said they can't make themselves better by lagging.
"B-but what if they're geared and playing a character that works in lag???"
Now you're implying that nobody did that on your server.
That's just something that people do, some forcefully - some don't. Doesn't matter that's the game's netcode fault (life is harsh).
Now speaking about PvE, yeah it does impact it negatively, but so what get a group and don't grind at weird times.
And yeah this game should work in matching but let's be honest if you really want to grind something you're gonna get a group and roll with that.
Ofc its annoying at times, I curse in guild chat sometimes about it however I came to shrug it off as some sad joke.
I personally like the merge there are much more items you can get for good prices and a lot of stuff is easier to find.
Also meeting and interacting with players from other servers has been very fun for me.