When you mold clay, there is no lag - the tactile and visual feedback is immediate. Same with handwriting, painting, or petting a dog. On the other hand, even in this current world of multi-core 4Ghz+ computers most software fails to provide immediate feedback.
100ms, I believe, is the magic number. The maximum delay between cause and effect that still registers as "instantaneous" by the human brain. Yet, surprisingly, it's still a rarely reached target. FPS video game studios might be the only major industry that consistently cares about and delivers on this metric. (Edit: "major" was an intentionally vague word to use here. Obviously, all kinds of embedded software projects have to deal with real-time or soft-real-time requirements.)
If reformatting the whole current code file took 1ms, why wouldn't you enable it? If compilation took 50ms, why not recompile on each new line? There's a magic latency barrier below which actions feel "free", so why not try and move as many of them as possible below that threshold?