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As an avid PvP'er, it's definitely frustrating. I play a rogue and pally in 5v5 and both have glaring weaknesses with regards to latency. The rogue is far more stressful, mainly due to what latency does to dagger rogues.
I feel that a lot of Australians have a long history of loyalty to blizzard, but we don't deserve our own servers. It would be utterly fantastic, yes - I would pay as much as three times the current monthly fee for a server that was physically in Australia. But as someone mentioned earlier, WoW is three years old. If they were going to do it it would have been done by now.
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