This system introduces yet more lag, which is increasingly awful kinesthetically. It makes modern games feel... sticky, sluggish, unresponsive, imprecise. We've gone from instant feedback to ridiculous degrees of input latency.

You press a button. It takes 1 frame for the signal from your USB device to get polled through the OS into your engine. Then it takes 1 frame for the input to affect the logic. Then it takes 1 frame for that change in logic to get "prepared" for rendering. Then it takes 1 frame for the GPU to draw the result. And depending on your video buffering settings and monitor response time, you're still adding a frame until you see the result.

If you're running 60 frames per second, that's an abysmal 83 milliseconds lag on every player input. And that's before network latency.