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CommonMan said:
I haven't used the PSN as much, but I can tell you that out of the 130 matches of Halo 3 I've played, only 1 has had ANY lag at all, and that was the day that ODST came out and hundreds of thousands of angry teenagers flooded Live. Needless to say that was my only match that day, yuck to a lot of the Live userbase. Do you know how many times I've heard "Nice game dude" pause "too bad you suck!" just before the matchmaking kicks off to go to a new game. Bleh. PSN is just about as good for online multi, haven't noticed much difference.

I'm not sure we're talking about the same thing.  More players playing on more servers shouldn't cause additional lag...