Truly excelent explanation. You did forget that lag switchers add to lag, but other than that its very informative. It always appeared to me that the host gets a little delay added (lag comp) but I'm not positive on that.
I'm certain they are working on this. There lack of passing info about it is, I think, do to there lack of assurance that what they are trying will work. They don't want to come out and say 'we fixed it' only to have what they tried fail.