the WiFi is used by my whole family, around 6 people including myself, if i contact the ISP about this, and if they do make any adjustments, will anything affect my family's usage in any way?
what i mean is, will those changes (if any) in any way affect other uses besides the gameplay?
and also, idk if you know about this or not, but i also use the MiFi to play other games like Call of Duty on my PS3, will those changes or adjustments or whatever they are improve the game performance on the PS3 as well? or do you know nothing about this?
The WiFi is the service provided by either your family's router or cable modem (some cable modems are also built in wired/WiFi routers). Whatever your family's ISP is, that ISP's partner, if it has one, is the entity that needs to alter its system configuration settings and/or hardware to provide proper traffic routing.
Right now, it looks like one of two issues: Poor routing infrastructure of your family ISP's partner, or packet throttling. It is most likely the former, since the latter is so detrimental when used carte blanche.
If you are getting poor performance via your family's WiFi, it could also be that somebody on the home LAN is downloading or uploading while you are playing and causing major bandwidth issues. Using BitTorrent or streaming videos online are two of the most common causes for this. WiFi should provide at least a moderately decent gameplay experience, assuming you are having no signal issues, though latency will still not be as good as a wired connection.
If your family has a router with wired ports on it, you might want to try connecting to one of those the next time you play and see if your gameplay experience improves. If so, you could be having signal reception problems via WiFi, which are commonplace due to how objects bounce signals from routers all over the place.
If you choose to contact your family's ISP, be calm and tell them exactly what is happening (severe latency when playing games). Provide them the traceroute you showed us here and explain that you are not very technically inclined, but are providing them with that traceroute because you were asked to by the technical support people for the game you play (you don't have to specify that it is Blizzard Entertainment, as they'll figure that out rather quickly by tracing and fingering the IPs). Once the ISP receives the information, they can determine where in the chain the problem is arising and contact the appropriate people to get the ball rolling. It won't get fixed overnight, but eventually it may lead to more fluid gaming.
As for your University, if you are using the MiFi while there, there's not much else that can be done - that device wasn't designed for the low latency games require, and neither is the cell network you are using.
I wish I were there to help you physically - I could probably determine the root cause of your issue, at least partially, and maybe help make it better at least while you're at your family's house.
Official Mac Tech Support Forum Cookie™ (Mint Chocolate Chip)
Guaranteed tasty; Potentially volatile when dipped in General Forums Syrup®Caution: This cookie bites back.