Edit: one public, easy to digest source
https://www.reddit.com/r/RocketLeague/comments/8wvf9u/contro...
Regardless, it was the common perception at the time and thus affected the behavior of players.
It was not "the common perception". At best it was common among your peer group?
Caring about slight latency differences but then still using joysticks for a shooter seems rather weird.
For aiming in a shooter you have: keyboard < joystick < mouse or gyro.
For the military applications, the inertia of the thing you are aiming is important. In the most concrete example, think of swinging a rifle around to aim it. For a slightly more abstract think of aiming artillery.
I played a LOT of Call of Duty and PS3. I never noticed input latency issues.
I think shooters where more popular on XBox because Halo took over a ton of the initial market share.