[nathannecro]

For those who didn't take the bit of time to read the case study linked on the homepage of the OP, it answers the obvious question of "well isn't latency a problem?". It's well written and lays out some neat ideas.

For those who are too lazy -- TL;DR:

The software allows players to set up servers easily so if a band is geographically close, but remotely dialing in, latency is reduced. The software is intended to be used as the primary method of sound feedback so it's advised that amps are turned off and earplugs/headphones are used to block out "local" sound. And finally, the author of the case study found that their experience with latency was between 30-70ms and that was more than acceptable. The only problem stemming from this latency was that songs with fast drum fills needed some adjustments to slow down the drum fills.