This is probably because your internet is slipping, I know you've optimized it and all, but everyone has connection issues every now and then. I would normally agree with you, but myself including friends from over 15 states have not encountered ANY connection problems. so hence I just have to assume that this problem is local to you.
EDIT: also, make sure you don't accidentally have a vpn on (some work in the background). you say you're matching with people from Europe, I think making sure you're IP is in your region is a must
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Nope, nope, and NOPE. I have a real-time connection tracker. Absolutely no packet loss, I have anti-buffer bloat to ensure there is ALWAYS enough bandwidth to support D2, I have top tier internet package, and more than enough. No jitter, no packet loss, absolutely stellar internet. I am going to have to assume you live on the cost and live within 50 miles of the host. I'm going to guess you're on east coast.