You're a lay person, you couldn't have known this, you're using words with very specific meaning to streaming (like latency) and you're comparing it to human reaction times, which are measuring something else entirely. You kind of reasoned about from a first principle in a very Paulgrahamarian way, and it led you deeply astray. That happens. And you're not the only person doing this, this is a comment section full of people who play games and parrot stuff they seen in YouTube, and don't have a concrete grasp of what it is they're even talking about, so it's understandable when it's laypeople shouting at laypeople that it's just a bunch of blah.
One of the reasons I hate HN and write in throwaways nowadays is that the comments section is a better example of Knoll's law than actual journalism.
Even the ~50ms total latency you get from locally streaming over a 1ms wired network (from buffering/inappropriate firmware design) ruins whole genres of high level gameplay. You miss tricky shots in FPS games, you can't confirm/link in fighters, etc.
The word needs to get out
Also 10ms ends up being close to the average input latency of a single additional frame at 60fps, and you just have to look to the efforts that have gone into Super Smash Bros Melee (especially in netplay) to see how far people will go for a single frame.
One absolutely does not need to be a pro to pull it off, and the whole interaction window for that mechanic is based around being able to react within ~32ms (1/30th of a second) to edge guard an opponent. It is exponentially harder to pull off in online play.
When there is fast movement the compression is much more noticeable, worse then the lag. Many reviewers doing graphical comparisons do it with static images. It's quite common for the whole screen to become a blur of compressed and pixelated blocks at the slightest network hiccup.
Also, you are misunderstanding what "reaction time of 100ms" means. It does not mean that any event that takes less time then 100ms imperceptible, it absolutely does not. The sound of a clap lasts 22ms and you are able to hear even shorter sounds. You can see light pulses of arbitrarily short length so long as they are bright enough.
What 100ms reaction time means is that you can't react to a given stimulus in less then that. Here's the important distinction, you don't react to lag, you perceive it.
To experience this for yourself, go this lag simulator webpage [1] and experiment with various lag times. You will quite easily be able to feel the difference in 0ms, 100ms, and 200ms of added latency. Keep in mind this is on top of whatever latency OS layers and browser sandboxing introduce.
Also, I found it kind of scummy how they will not actually tell you what hardware you'll be getting beyond "4c/8t". Mine turned out to be a low-clocked Haswell, a CPU so outdated that Steam downloads were CPU throttled. I used it for about an afternoon and then immediately cancelled.
After doing it several times it let me save the score.
Reaction Time 181ms
74.46% percentile