Every internet connection I've had over the past 10 years in the US has been fast enough to send and receive at least a dozen uncompressed CD-quality PCM streams simultaneously. On paper, my current fiber connection should be able to handle 1,400 of them. This insistence on audibly mangling the audio to keep it at ~96 kbps makes less and less sense every day -- especially considering how the audio is usually carrying all the important information in the call anyway!
(I find the same thing happens on streaming services too. 98% of the bits are for video, 2% for sound.)
Honestly, my bluetooth headset probably adds almost as much latency as my fiber connection and wifi combined. That's another issue most people don't even consider: bluetooth is orders of magnitude slower than a wire, even in the best case scenarios.
If every packet has a risk of being dropped or of arriving out of order then increasing either the size or the sheer quantity of those packets will also increase how often they get mishandled or buffered.
Plus you run into compatibility problems between different kinds of devices such as mobile users trying to connect over spotty 3G connections.
EXACTLY. Latency is a killer. Even on cell phones.
Latency does not get enough attention. It's not as in-your-face as dropouts, but the levels of latency which we experience in modern communication channels are crazy bad.
And even if platforms are aiming for 150 ms, in practice the latency is often much higher than that.