One thing you have to take into account is that the vast majority of modern console gamers have never experienced PC gaming @ 120hz on a CRT connected to a good old 15-pin VGA connector...

If you were to take a console gamer that was just fine playing a game at 100ms+ latency, and let them play the same game, while magically removing 95% of the latency, they would probably be amazed, and never want to go back to their previous setup with horrendous latency.