Client-side prediction does a very good job of hiding the network latency. Granted a lot of games run their servers at lowish ticks/sec (people do complain though) which is 30ms worst case at 32tps.
You can do similar tricks in a cloud setup also though; notably you can do hit detection based on what the user was seeing when they entered the input rather than what the server was doing later. This is pretty similar to client side prediction.
