I've suggested this before, a lag cap for sparring. To account for the server lag we can fluctuate the cap with relations to the amount of people online. This can be accomplished by taking a survey of peoples average ms and then the ms they have when 4000+ people are online.
People with 'hitboxes' that aren't even close to their characters (really bad delay) and have constant lag ruins the idevice tournament. The excessive lag disqualification rule needs to be properly implemented.