there are so many reasons why netcode can fail but your points are valid.
However, I'm really wondering whether the real problem here is that there aren't enough Canadians playing KOF.
EVERYONE plays SF. yeah, so that's makes it easy to find opponents. How many Canadians do we have on the player list? Hmmmmm.... I wonder.
The worst thing that yes you can get to play a good SFAE match online. The question is, do you actually want to? Or would you rather play KOF?
How does it feel?