Damn it, I was hoping it was just my internet connection being stupid for a few days! I've definitely been feeling this, to the point that it's becoming increasingly difficult to actually want to play the game. Melee is all but impossible due to the delay, sniping is an exercise in frustration, and the amount of times I've walked around a corner and died because the enemy opened fire and killed me before my game has caught up made me turf my brand new AU$100.00 controller across the room. Only Dark Souls has managed such a feat.
I'm not sure what has caused it, but the lag is probably around 200ms at the moment. Anything above 50ms is unplayable in a FPS. As an Aussie, I've gotten used to 80%+ of console games being unplayable online due to the massive amounts of lag. But, I figured now that we're paying for PSN, we'd be enjoying a better infrastructure. Oh naive little ZehDon, how simple you are!