At least it looked like the GMs had a heart there. I remember some plot events like the Battle for Stone and some of the skirmishes with Blood's army where everybody was literally glued to the floor and this one tiefling sorceress just mopped the floor with everybody because she had like 90 magic missiles and nobody could reach her or even draw their bow. That's the absolute worst kind of lag, where only the players seem to feel it, you sit there and you watch your paralyzed avatar frozen like a statue and meanwhile the monsters are doing a happy dance at full speed as they invoke their own version of "perpetual time stop". This lag in the video seems just... laggy.
I will say one thing though, NOTHING beats the old 2004-era NPC merchant lag. I remember when somebody would walk into that house and the whole server would freeze up, thousands of miles away on the other side of the world a party would die. Now those were the days... wouldn't go pick cotton north of Hlint without a balanced party, lol.
In comparison to today, the lagfactor has dramatically decreased since then. I also note that's around the same time Dorg came to the server... coincidence? or just good coding?