You do realise that D2 isn't to bad. Also dedicated servers still gets lag.
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It's tough for me to assess D2 versus D1. For one, I don't play a lot of D2 Crucible. 4v4 ain't my thing. For two, D2 plays very differently from D1. Lag is less of an issue with fewer players in each match, slower gameplay, and more team shooting form a distance. For three, the worst of D1's lag wasn't in the first few months of the game when the population was at its highest. Finally, I have seen lag issues in D2. It's not like D2 is some magic lag free game that puts peer-to-peer on par with dedicated servers. Anyway, that's my two cents.