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Can the latency be improved ?

Reminds me of http://holiday2010.ogilvy.com

    The game-engine, collision and logic run on 
    the server in JavaScript running on Node.js. 
    The clients are simply rendering information 
    sent from the server, and sending off keyboard input.
https://github.com/hyperandroid/CAAT/

https://github.com/BonsaiDen/BiSON.js

http://developer.valvesoftware.com/wiki/Source_Multiplayer_N...

Also, in this case the clients are predicting and rendering the entire game state based on input from all other clients. It is also enviroment agnostic and you can run the same simulation on the server with the same code and be in sync.
Certainly can be improved.