It's very noticeable when you came from games with instantaneous reactions to your button pressing. There was definitely a pause, however slight, between when you pressed the button and when the effect went off in FFXIV 1.0.
Can I ask how long you played 1.0? I never got the chance and was curious if the game was as laggy as people claim in these old threads. I'm liking what I see for ARR though. I think SE has done a great job so far with their new system.
I played until slightly after Rift came out. 1.0 lag wasn't unplayable, just irritating. In combat, on my connection (cable modem), I could easily ignore it because combat settled into a repetitive routine. It was more obvious in crafting, because the crafting orb was time sensitive and even White orb -> White orb was pretty distinct, so you easily could run into a situation where you pressed the button, the orb changed, and then your action went off. I could see people saying it is "unplayable" if their ISP did not like constantly connecting to Japan though. What actually WAS horrific and related to connectivity were the patch downloads, as there was very little rhyme or reason to how fast the downloads went.
Edit: That's a good point Bartel. I didn't think about the model displaying issue because old EQ habits kicked in and I tended to avoid crowds except for when retainers were involved. I'd forgotten about the retainer system specifically. It was put together so horribly that putting too many retainers in a retainer ward actually crashed the ward. It took a while before people caught on to that.
Edited, Jul 29th 2013 3:37pm by Ravashack