> I think the latency becomes most problematic when it's inconsistent
Indeed! I don't have a problem using say a SSH console with 1 second lag. After a bit of initial cursing, it works just fine, I can write my code or edit conf files just fine. It's not as comfortable as writing at home, but it's not really a big deal.
However if the lag is inconsistent, say due to packet drops, it's horrible. Even if the base latency is low.