Lag issues have been solved before

By Blizzard, no less. And what exactly am I referring to? I am referring to the RTS games like Starcraft and Warcraft. I will focus mostly on Starcraft 2, since it is the most similar game of the RTS genre in Blizzard's catalog to Diablo 3.

SC2 requires a constant internet connection and has an interwoven multiplayer component that was supposed to be something akin to an eSport, which would have been a problem if they had not developed solutions for the lag: In multiplayer, if there is a problem with lag, the game slows down and pauses for everyone. Nothing happens while you are lagging and everyone can see who the offending player is.

I don't believe it should be that difficult to bring the same system to Diablo 3, and there shouldn't be a issue with one being an action RPG or an RTS since both require precision timing, far more so than the likes of WoW. If the Blizzard servers can detect lag in one game, there shouldn't be a problem in detecting it in another, especially with disconnects.

So my solution is simply to bring a well developed lag solution from one blizzard game to this one.
It will get ironed out, just give it some time. All of their games went through this exact same phase and even in Blizzard's case, I do not think any amount of extrapolation/history can prepare them for their games come Launch. Blizzard PR even announced that they prepared vigorously for an aggressive and record-breaking launch day, but did not expect the additional MILLIONS that picked up the game. What this tells me is they planned for 2 million, what they ended up with was 4-5 million.

How many games can even say an extreme launch day scenario is planning for even one million?

Not a Blizzard Fanboy by any means, just approaching this from a business perspective. Regardless, a well thought out post OP. It WILL happen, just give it more than two weeks :)
The volumes of people will calm down and the lag issues will go away.
Well as far as that "solution" goes for SC2, you must not watch many tournaments. It's far more common for those pauses to disconnect the player at the end then to have that player keep going. This is actually a major issue for SC2 still, which they are talking of putting a feature that allows players to continue a game from the replay. That way they can start back where they left off. Otherwise, from experience of watching a gazillion tournaments, you are putting far too much stock in SC2s current lag "solution".
I have yet to play an online game that didn't have optimization issues at launch.

Yes Blizzard has solved latency issues before, on a case by case basis. There is no bringing in a system from another game and having it be lag free.

Latency is the result of inefficient coding and resource management specific to the application. You may have noticed lag being less and less of an issue, it will continue to improve as Blizzard determines where the slow downs are coming from and adjusts resources and code to perform more efficiently.
Perhaps I have jumped the gun by saying this solved or will solve all of the problems. I just intend for this to be a solution to keep us from dying due to lag, and since the servers are capable of detecting disconnects and lag, they should pause they game automatically until everyone is back in sync and/or have players log out if they disconnect at no fault without their character persisting in game for an additional 10 seconds.

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