"jonwell, if that is the case, please explain why high bandwidth ALWAYS means lower latency."
Does it always? Not so sure about that.
Anyway if it is the case, it may be because the network is simple less crowded because it spends less time moving information, or it may be because a faster network has better equipment. Or something else.
Think about it though- all you're sending is clicks and all you're recieving is small bits of info from a server about where things are, what loot that mob had, etc. It's not bandwidth intensive at all- right now in WoW my traffic is 2016b/s in, and 66b/s out. That's nothing!
Bandwidth by itself has nothing to do with how fast small amounts of data move around a network.
Homie- not sure, I never heard anything like that. Cable works fine, I'm regularly below 100msec :P