I realize that you are connecting across the country over wifi but the lag is terrible when I'm even playing someone in the same state / region. What exactly is the big issue? When I play 360 lag exists, but its mainly with that one hosts individual connection, it seems like EVERY game on wifi brawl is laggy. What is the main cause? Does 360 just have a stronger connection?
There are two primary reasons:
1) The servers for Brawl aren't that good. (Even Mario Kart DS, Nintendo's FIRST Wifi-enabled game, seem to has better servers than Brawl. >_>)
2) Brawl uses a less efficient method of transfering information, instead of running the game at full speed and just using the wifi for determining the opponent's actions and locations, it makes sure that EVERY frame of action is transferred between the players. Now you may be thinking, "why would they do something so stupid?". Well, there are two, powerful benefits for this more laggy method. The first, and most important one, is that there is ABSOLUTELY no way to warp in Brawl. (Warping tends to be a BIG problem in online games,
here's an example, the car in front warped, taking out the guy that was two car lengths behind him) this is especially important because warping during combos [yes, Brawl combos], recoveries, item spawns, or just gameplay in general would be FAR worse than the lag we have. The other important reason is that without warping, replays are PERFECTLY recorded [on non-hacked stages], warping would result in severe discrepancies in the opponent's replays. Don't ask why they put a limit on the replays, it's been proven unnecessary by people that mod their wiis, so I have no clue why they placed that cap on in the first place.