The old Quake style games often had very naive networking. Whereas now, I seldom notice the network even exists.
It's not that lag has changed much--contrary to the article, broadband is less important in games. It's latency that matters, not bandwidth. Team fortress 1 can run on 16kbps.
And latency is still the same as I had 20 uears ago, 50-150ms.
But the benefit of LAN was that it was the only way to experience latency free gameplay. And it really did make a big difference. In comparison, internet play always felt weird after experiencing LAN.