Latency is inherent to long distance communication and thus also to the internet. I don't think the latency of FC's servers to my end is bad (or worse than other games with servers in the US), so I presume that FC's server and connections don't need to be upgraded at this time (unlike a few years ago). A cheap trick often used to remove latency issues, is having the gamer's PC decide who he can hit and who not, which is very exploitable. Huge games like wow can afford (and populate) localized servers, removing most of the latency.
What FC should have done (imo anyways) is take the latency into consideration when designing the gameplay of the game. Ofcourse FC didn't take anything into consideration when they were on another round of stat inflation -which they claimed was design-. And now we have a game where everyone is zipping past at high speeds while many classes are forced into melee. The only way I see how FC can fix the melee latency issues, without resorting to even more bandaids, is by a drastic runspeed nerf across the board. Something that we (me anyways) won't like after getting used to our present runspeed, but something that is probably needed nonetheless.