That makes much more sense. I can definitely see the difference going up to 60fps, but once you get faster it begins to just all feel smooth. So the paradox is - Whats on the screen is delayed by the time your eye receives it?

Well obviously from the time something occurs (say, on the server) it has to go from the server to your PC (so thats your lag) plus the time it takes for your monitor to draw it, then the time it takes for the light to travel to your eye (very short indeed), then the time it takes for your eyes to sense the picture, then transmit it to the brain, react, process and respond.

So if you think about it, you probably react relatively slow when playing online.

Edit: Did I just go off on a tangent explaining lag factors?

Maybe, but rendering the level doesn't require any connectivity - So I guess you've got a whole wham bam mix of things going on there!