With cloud gaming it's possible to playing field far more, because competitions can now force the same latency by introducing artificial latency.
Cloud gaming also eliminates cheats like wall hacks (or fog of war removal), which is currently possible because the game client and rendering engine all run on a local machine.
Playing a game with latency is horrible, be it artificial or not. If you want the pinnacle of any esport, it will be played on LANs and never streamed.
It's a subpar experience that almost exclusively casual gamers deem acceptable.
Most e-sports events don't fly players into an arena - that's only for really high budget events.
It’s only a given because circumstances force and/or allow this.
Also, how do leagues and competitions account for a 30 ms vs 70 ms latency difference?
I ask this as someone middle-aged who immediately notices this difference, when playing ladder PvP games.