You can't break the laws of physics. Light travels only so fast in a given amount of time. That has always been a issue with gaming, and the continent down under. While all online gaming suffers from a degree of lag even if it is too microscopic to be noticed. Those microscopic issues start to add up when you deal with distances of thousands of miles.
Thus the answer is regional servers, and whether they are operational is very dependent on the user base. With a 360 or a PS3 which can act as their own servers its not a relevant issue. However the Wii isn't quite the same kind of setup from what I understand. I could be wrong, but I don't think the Wii can function as its own server.
I don't necessarily think its fair that the Australians get the raw end of the deal thanks to geography, but quite often they get persecuted for their protective lag. I also suppose the size of the market isn't helping to convince companies to set up servers in the region. Would anyone know if Nintendo has dedicated Australian servers.
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