I think it all depends on your ISP's internal network, specifically the distance to the node where the traffic escapes said internal network to get out onto the "backbone" of the Internet.
I have somewhat decent evidence to backup my theory since I have the experience of playing on two different Internet connections. I use teching as sort of a baseline standard of comparison.
Up until the first of the year, I lived in an area where I had cable Internet. Internet sites would that would try to guess where I lived got it right. (E.g. "Weather in <town name>" or "Meet singles in <town name>") In addition, when I would run speed tests (specifically at
www.speedtest.net ), I would get latencies 20ms or lower with nearby servers. Now, when I played For Glory, yes, I would sometimes have bad connections. But I would also have many matches that had just a little bit of lag, but not so much that it prevented me from playing incompetently.
I would also have some matches that honestly felt like the person was playing against me right on my own Wii U. I would honestly say that with around half of the matches I played, I could tech almost every time I wanted to. (Which was pretty much every time I was falling down - that's how I play.)
Now, after the first of the year, I had to move to a small town in northeastern Missouri that only had DSL for "high speed" Internet. Now, with this Internet connection, sites that tried to guess where I was located at always thought that I was located down in a suburb of St. Louis - about 120-140 miles or so from where I live now. Actually,
www.speedtest.net thinks I'm near St. Louis too...
When I ran speed tests on this connection, the best latencies I could get would be between 40-45ms. Now, when I try to play For Glory, a majority of the connections I get are just bad. Quite frequently, my opponent and I end up just running past each other and attacking right afterwards, trying to do a running attack. However, I would say about a third or a quarter of the time, the connection between me and the other person is good enough that having a semi-compentent fight is do-able and I can tech at least half of the time. However, I have to sort of "think ahead," take the offensive and assume my attacks will connect while I'm playing to be successful in the match. A small minority of the matches I play (<10%), I can tech about 75-90% of the times I try.
Now, with all of that being said, I started with 1.5Mbps/256Kbps and got it upgraded to 10Mbps/1Mbps in the time I've been living here.
I've seen absolutely no difference in the quality of connections and matches I play regardless of this upgrade. From this, I believe it can be concluded that the speeds you're paying for make very little or no difference in the quality of matches you'll get.
Furthermore, when I called my ISP to get my connection upgraded, I talked to a tech about latency issues and about why certain sites think I'm in the St. Louis area. Sure enough, all of the traffic from the small towns get routed into their internal network and get sent down to their node in the St. Louis area. It's also hard telling how many points the data from my modem gets routed through before being sent to the node.
So, basically, if you live in such a location where you are close to your ISP's "exit node", you should see improved latency and better connections... and therefore more "playable" and enjoyable matches! But if you live farther away from your ISP's "exit node"... you will probably won't have as good of an experience. 
) 
