That's the problem, I'm on ADSL2. The more upstream bandwidth you use, the worse your latency gets.
Let's say I want to stream a multiplayer game. This is now an impossible situation because I barely have enough bandwidth to do a 360p stream as it is. Even if I very carefully keep my upstream bandwidth under 80% utilization, my latency is through the roof.
Or let's say an automated off-site sync happens for backups. There goes my latency again. Or I take a photo and upload it. Or I upload music I purchased to Google Music. Or I video chat with someone.
So, yes, when you have that little upstream, anything relevant maxes it out and your latency turns to shit.