This is just straight up not true in the slightest. There's a reason HDMI ALLM exists, and it's not because "nobody notices hundreds of ms."
80ms is very noticeable, it's like moving around in sludge. hundreds of ms is straight up unplayable. This is no where close to what consoles & TVs are currently doing, which is closer to 50ms.
The fact that console gaming is so popular despite it having such horrendous latency is proof that latency is not an issue for streaming services to go mainstream. I'd look more at unreliable latency and data caps, people definitely notice 100ms latency spikes.
They're surprised because that's absolutely not even remotely close to true. Consoles & TVs do not have hundreds of ms of latency. This horrendous latency does not exist. That's why it's not an issue.
Look here, the games averaged 100ms for a monitor with no display lag, add another 50 - 100ms for a typical plasma tv: https://displaylag.com/console-latency-exploring-video-game-...
And I do notice 100ms which is why I mostly play on PC with sub-50ms end to end latency. But this is besides the point.
> add another 50 - 100ms for a typical plasma tv
The typical TV has never been plasma? LCD TVs have had game modes for a decade and those are 10-20ms latency. Consoles automatically switch into game mode, too, and have for a long time.
Also note that many who play for example COD does it on TV's and consoles which has hundreds of ms already without people noticing it, so playing with 80ms input lag would be fine for 99% of players.