Keep in mind, server equipment doesn't contribute to online play. The servers set up matchmaking, but the game itself is P2P. That's why the denial-of-service attacks work - if the game itself were being routed through servers, your opponent wouldn't be able to see your IP address in order to attack you.
You can see how bad the server performance is every time you open a server-facing menu (the marketplace, or even your inventory). Imagine if that level of lag were applied to every action in game...