Check this out. After some haggling and explaining to blizzard, the denizens of Terenas have got the response we needed from Evanm to confirm we are not crazy and that there is a problem.
I'll quote Evanm:
"Who saw my jumping gnome in Ironforge, his name was Adgewe?
Oh and yes the latency was high. Again I'm not the one that does the actual investigation, I can just log on to add more data to my report."
all of the thread is here:
http://forums.worldofwarcraft.com/thread.aspx?FN=wow-tech-support&T=994963
It's quite a read but something to keep an eye on.