Surely hiding lag is better than not doing anything at all, for the majority of players atleast, even if it does have its own bad side effects. I would say the majority of online games do this, and for good reason.
Lag hiding is good if you like your games to be determined by randomness. More clever lag hiding, more randomness (usually). But yeah, going by the average online players skill, i guess randomness is more fun than getting shot in the head by me
If you like to be rewarded for your skill, Lag hiding sucks PERIOD. (get better connections instead or a proper netcode). Network lag will allways be there, trying to hide it is possible, but its still there. And since its impossible to remove it.
all you can do
with lag hiding is remove the feeling of lag, while the lag is still there. This just makes it impossible to predict the lag and you get situations where you shoot somebody in the head on your screen but that person might have killed you already
.
This is the reason why i stopped playing KZ2. KZ2 has a lot of lag hiding going on, looking at the screen, you cannot see it. Bullets fire instantly on your screen, people get hit instantly. But if you start looking at how long it takes for people to die and for you the get the kill message, you start noticing how laggy many of those games are.
This is aspecially noticeable when playing as sniper, as the cloak will uncloak on your screen instantly upon hitting a player (and if your shooting at something else than a heavy, he should instantly die), and then just look\wait for how long it takes to get the kill sound or until the message pop ups. Lag hiding explains why there is so incredible amounts of double kills in KZ2.
Proper netcode instead => less actual lag -> less double kills\less randomness\less bad things.
I completely understand that if you SUCK at online shooters, this might not be a big deal for you. Infact you might enjoy the game more, as your chances of killing people increases (because of randomness with unpredictable lag).
If you are pretty decent, and know when somebody should have died or not (aka, i saw my bullet hit your head), lag hiding is just frustrating.
If i wanted to play a game thats determined by randomness i might aswell play yatzy.