A lot of people swipe on the keyboard to type nowadays. Swiftkey and the built in Google keyboard both support it. Works very well, it's surprising how well it knows what word you're typing just from gliding your finger around.
Touch latency means that the 'line' that follows your finger around might lag behind ever so slightly.
I've not found that it's affected the responsive feel of the device at all. When you tap things they immediately open. When you do pretty much any normal operation like pulling notifications, swiping between screens etc it's great. It only seems to apply to how fast things follow your finger when you're quickly dragging something around, and most people only noticed now that someone mentioned it and said how to check.
This demonstrates the effect well:
See how even at 50ms, which is considered normal on smartphones, it still lags behind a little. So I wouldn't worry too much. It just gives 'quickly dragging something around' a bit of an elastic feel.