Try it yourself here to see how bad that feels: https://www.skytopia.com/stuff/lag.html
That page also links to a great video on what it's like on a touchscreen: https://www.youtube.com/watch?v=vOvQCPLkPt4
I really wouldn't want highway drivers in that monster truck to have any barriers to their reactions, especially with its nontraditional crumple zone :(
There isn't really any excuse for this.
It's hardly a performance car so perhaps it's not a big issue, but it really should not the there and should be fixed.
There's not actually THAT much latency (delay between input and response). There IS some acceleration curve being applied (X degrees of input = X^Y degrees of steering, buffered over time), but that's totally different. It's probably safer this way vs suddenly jerking the actual wheels back and forth.
The tires start moving immediately, so it looks more like a limit in how quickly they change direction. It appears laggy because they don’t finish the movement when he does. They do respond right away when he shifts his arms a little in the middle of the video.