This depends entirely upon where you're connecting to, and from. For example, I can't connect to us-east-1 servers with under 50ms of latency, because I'm out in the rural west, and my connections run a thousand miles south before getting on a good east/west backbone. Spikes are not uncommon.
> we have realtime games with lag compensation that make that connection instant
When the prediction algorithms are correct. When they're not, you start seeing some uncanny behavior that you can't predict or compensate for (dead-on shots missing, actions being rolled back, etc).
I really wish people would set aside their "well it's always worked for me, surely it must work for everyone" attitude, because it is tragically and obnoxiously false.
If you're in San Francisco connecting to a server in London, it's a physical impossibility to get under ~60 ms, and that's assuming a direct signal going across the surface of the planet at the speed of light. In reality, it's not direct, and there will be at least a couple dozen routers between.
Explain that.