The online doesn't lag at all for me, but it's like normal multiplayer except you can't discipline the cheating f-ck playing next to you.
Playing against some people is fun, but it's nothing special. Not that I agree at all with this troll thread. I say that it didn't live up to it's cult-like hype. That would be impossible. It's a solid game, but I'd rather be playing a GTA, Tales or Star Ocean game most of the time. That just has to do with my preferences.
It's all entirely subjective.