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Few things
1Lag does not control mobs blink in and out of existence, no movement just there then not there,things might take a second to load in. But it does not make thing pop in and out like at arkfalls I dont care how much "LAG" ya got.
2Lag does not have anything to do with sound being lost at over populated arkfalls.
3Lag does not control hardware slowdown and crashes. Again dont care how much lag you have no going to crash your system.
Lag does cause mobs to blink in and out XD when there is a internet problem mobs will skip around the screen due to players not getting enough bandwidth. Lag will stop sound and cause crashing due to the same reason.