I've always suspected it was their servers and not our comp's fault. They could alleviate the lag issue by using dedicated servers that only house D3's code and calculations from that code, but that might not solve the issue completely. WoW also has this issue, as some servers do double duty, thus creating some lag when the servers get full or are overtaxed. The latter doesn't happen very often, but often enough for network savvy people to notice.
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I've always suspected it was their servers and not our comp's fault. They could alleviate the lag issue by using dedicated servers that only house D3's code and calculations from that code, but that might not solve the issue completely. WoW also has this issue, as some servers do double duty, thus creating some lag when the servers get full or are overtaxed. The latter doesn't happen very often, but often enough for network savvy people to notice.