Not entirely true. Many networked games use client side prediction, and collision detection (at least for collisions against terrain and walls, weapon hits are

Not entirely true. Many networked games use client side prediction, and collision detection (at least for collisions against terrain and walls, weapon hits are often computed on the server to curb cheating). If you have a 100ms latency to a stadia server, then there's a 200ms latency between pushing forward on the stick and your character moving forward. This is not the case on a networked game, the client would start moving your player immediately (even if there is a 100ms delay to send those updates to the server).