My lag is worse too. A friend who lives ~3 hours away, the person I was most looking forward to being able to brawl with, is orange and I'm red for him. We tried to play a one-on-one match yesterday, and it was just horrible. Plus, random matches were a slideshow pretty much, whereas they used to be great. And this is only 3 hours away, it's not like we're playing cross country or anything.
Is there some correlation with lag and the peak playing times of the evening? Like stevey was saying, maybe if we tried to play after midnight, it'd be better simply due to less traffic...
Whatever, it's really disappointing.