So, I played against a friend of mine from England recently, jokingly assuming it would be unplayable...
And it wasn't.
I mean, you totally wont be doing instant air dashes as smoothly and the lag is noticeable, but it was more playable than most online Marvel 3 matches! If anyone wants to hit up Tasmania's worst (and maybe best?) Naoto, add me on psn, link6616.
I am loving this game to its very core. I even enjoyed the story mode! (most of which was beautifully bad/silly, but Labrys' story was honestly quite touching, also invisible walls as a plot device....)