Also, it's immediately obvious to anyone who's ever ssh'd to a server on another continent. The added ~100 ms latency makes for a very different "feel".
That is describing a different issue.
This test shows your visual system can detect the difference of 50ms between animations. Indeed, the human visual system can also tell the difference between 60 FPS (16ms) and 120 FPS (8ms), and even higher! This doesn’t mean that you can tell the difference striking a key and seeing the character draw on the screen after 8ms instead of 16ms.
Typing (i.e. pressing many keys in sequence instead of only a single key) could then be interpreted as animation, which by this logic would make such a difference in latency detectable again.
Nonsense. You can test this yourself. Open a fast terminal, eg. xterm (libvte based terminals have a low framerate and are unsuitable).
Try:
The difference is immediately obvious.