All attacks have hitlag associated with them. Some attacks seem to have an 'elemental' property (e.g. Falcon's Knee, Zelda's Kick), which we assumed to multiply hitlag. Instead it seems they add a static amount to the normal hitlag which is calculated in a different way, and so this code doesn't affect it. Still, I wouldn't call that gamebreaking considering the minority of moves that cause it (and, arguably, the awesomeness of hitting with them warrants the freeze).
Hitlag shouldn't be completely removed - but a reduction is important.
EDIT: I believe in Melee all attacks had about 3-4 frames of hitlag, with higher power ones having slightly more. Most notably, Samus' Fully Charged Blast Shot had 16 frames (IIRC). The effect was clearly more noticable with multi-hit moves - for example, the timing of the L-cancel on Fox' Dair is changed quite significantly by whether or not you hit your target.
Hitlag shouldn't be completely removed - but a reduction is important.
EDIT: I believe in Melee all attacks had about 3-4 frames of hitlag, with higher power ones having slightly more. Most notably, Samus' Fully Charged Blast Shot had 16 frames (IIRC). The effect was clearly more noticable with multi-hit moves - for example, the timing of the L-cancel on Fox' Dair is changed quite significantly by whether or not you hit your target.