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ameratsu said:

After dozens of laggy as hell online games in LBP, unless there was some way to guarantee lag free play, it would be a disaster online. Not to mention that Mario platformers require more precision than LBP does.

Don't get me wrong though. LBP is a lot of fun, but unbearable lag kills the fun faster than anything else.

I do this Nintendo should have done online leaderboards though, and had challenges with online rankings. Something like that would have been a good and obvious addition to an already excellent game.

I can definitely agree with this.  Since they clearly designed the stages to be conducive to speed runs, an online ranking system with the ability to upload/download 'ghosts' ala Mario Kart would have been great.  I'm not sure if I'd be able to compete but I've actually found it really enjoyable watching the Super Skills videos in the game.