Matt Firor mentioned this in an interview with Ausgamers back at the end of August.

Does anyone have any more information on the subject??

Very, very playable seems like dev speak for "it is going to svck for competition and PVPing but hey, Oceanic players are used to it anyways...you can still play the game, you just will always be at a disadvantage in PVP"

Seeing as this is more of an action based game, latency will be a big issue for PVP and possibly raiding, I am not all that familiar with raiding though. I already have a problem with PVP latency in Dark Souls. The simple answer is that they will likely do what they can, if they see the numbers being there, but are making no promises from what I can tell. I am not aware of anymore information than that posted in the OP and I am speculating.