There's timing, and then there's timing. If you feel you really need a latency of under 30ms in the internet, the logistics of it aren't easy at all. Virtua Fighter, according to its developers, would need less than 15ms of latency. That's exagerated, IMHO, but even then, you can imagine it's not an easy feat.
There's also the decision of how many servers you're willing to have. Keep in mind that, regardless of costs, having a lot of servers may mean reduced lantecies, but it also means there's a lot less people to play with on each server. That becomes a problem if the game is not imensly popular, and even if it is, once it gets old and there's less people playing it.
There's also the decision of what to do to regions that do not have enough players to even merit a server. Do you just leave them out in the cold? Do you put them in an existing server, where they'll noticeably degrade the expirience of everybody else? However you slice it, there will always be regions like this.
Also, with consoles you can't really handle direct connections between clients all that well, which is a common solution for PCs. Nor is it common for the server program to be released so that you can run it yourself and play with friends, or that your ISP may run it for you. These aren't really solutions you're going to have with devices which are supposed to "just work", at least not as of now.
The Xbox does LAN parties for some games, which would work for low latency games like Virtua Fighter. The Wii, however, doesn't and I don't see the PS3 doing it either (I may be mistaken). OTH this is just non split screen multiplayer, so if you're on already on a switched LAN, why not play on the same machine? The only use case scenario I see for it is dorms really.
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