Not input lag, frame lag. The input lag wasn't too bad. Good example here.
Just yesterday I played somebody in Sacramento, CA. Now that match had a lot more input lag - .5 seconds at the least. Strangely enough, there was next to no frame lag, so timing inputs was crappy, but the actual game ran almost buttery smooth. In those matches I started crappily, but soon was giving out the beatdown.
Those kind of matches can be annoying since you really can't do what you want, but it's actually easier from my observations to avoid making mistakes since you kind of limit yourself to particular movements. On the flipside, frame lag can actually ignore inputs altogether, meaning you make a mistake regardless of how it was inputted. The worst though is a nasty mixture of both. That kind of stuff will frustrate me to no end and leave me making entire paragraphs full of online Johns. Essays even. =P (Yeah, I'll proudly say I will John endlessly when I feel cheated. Not afraid to admit it.)
Can't do much about it though unfortunately. I've done everything I can on my half. Stupid Nintendo.