Since this thread is close to devolving, let's get things back on track.
Firstly, most games utilise a Client/Server connection system. If you have a bad connection to the Server, only you're game is affected, although you may appear to 'Warp' to the other people connected to the server due to the infrequent information refreshes. This is because everyone uploads information to the Server, and the Server downloads information to everyone else, resulting in a single connection being established and maintained. You're not connected to the other people directly, rather indirectly.
Demigod uses Peer to Peer connection system (p2p), where there is no Server. Everyone connects to everyone else, both uploading and downloading informaton to each person and creating a new connection for each person in the game. For example, in a 3v3 you actually have 5 connections running at the same time. This increases the upload requirement, which is where the problem occurs, of the game roughly five times compared to a client server game - although is by no means a rule, just an approximation for the purposes of this discussion. You're actually directly connected to everyone else in the game, rather than indirectly. This elimates cheating through 3rd party manipulation entirely and removes the reliance on servers - Demigod will still be able to be played in 150 years from now, literally, while games like Counter-Strik will be useless if there severs are ever closed down.
As a result of this P2P connection system, the requirements for the internet connection needed to have a stable 5v5 game are increased above what is normally required. Now, while games like Warcraft 3 use p2p - as do most RTS games on the market - they piggy back on connection networks, like Battle.net, which actually connect for people who are going to cause problems. Using this network, the total connections is lowered thus enabling people with slower connections to be able to play larger games because the connection situation closely resembles a Client/Server system. Why doesn't Demigod use something like this? Because one wasn't available at the time the game was coded together, and so a 3rd party solution was used - which simply fell apart at launch, which is why Stardock created their own service in two weeks - and believe me, this is something that would normally take the better part of six months to put together - and why the game now functions better.
If you're connection is sufficent - and I doubt many people here who claim to have such connections actually do as the upload requirements for this command are astronomical - you're able to use a console command to enable yourself to become a server-of-sorts and Proxy everyone through yourself, creating Lag-free games with as many people as your connection can handle. This is built into the service and works quite well, as long as you have the appropriate connection.
There is no issue with Demigod, it's connection service or it's Netcode. If you're connection is unable to handle 4v4 and 5v5 matches, the problem is yours and only you can fix it by upgrading your internet connection. For me, this is not an option in my area, and so I continue to play 3v3 games, which is perfectly acceptable to me.
You people seem to be unable to grasp that my gear is fine, the point is it only takes one other person in my game with poor hardware that will ruin the experience for me.
Then use the forums to locate other people to play with who have sufficent connections, rather than bitching and moaning and insulting other people. If you join one of those games, and you still experience lag, then the problem isn't everyone else; it's you.