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Well the Tekken producer did say there was latency (it is a wireless satellite device after-all), but it was extremely small. That was before they shipped the newer SDK and from what it seems in the that video they help hide the latency by refreshing the tablet first and the primary display second.

http://wii.ign.com/articles/121/1219570p1.html

Article was written in early Feburary about the time the newer SDKs were rumored to be rolling out.

My mistake the v4 was rolled out about that time.

http://www.gonintendo.com/?mode=viewstory&id=176055

The v5 "final" kits didn't hit until May/June