I wonder if the rise of competitive RTS has changed this guideline. In SC2 people will start to complain if their ping to the server is more than about 130ms, and anything above 150ms starts to become painfully noticeable.
In Brood War being able to play on "LAN Latency" was a always a huge deal---to the point that unauthorized third party ladder systems enabled players to play at "LAN Latency" even when battle.net official didn't support it.