1/8 of a second is terribly slow. Delays like that fuck up your perception/feedback loop. If you put on headphones, and listen to your own speech delayed by that amount of time, you can hardly speak (delayed auditory feedback). If you have to control a device that delays that much, you're prone to overreacting, and then entering a run-away correction cycle, which isn't nice in a heavy, fast moving machine.
Yeah, it's really not great. To be fair, though, in the dialup days, many of us learned to cope with that ping while still playing Quake 2 or whatever. You can adapt, it just takes a while, and you learn to lead your target. You can make similar adaptations to vehicle control (like playing a racing game on a really laggy old-school plasma TV), but it's not pleasant.
I really wouldn't want highway drivers in that monster truck to have any barriers to their reactions, especially with its nontraditional crumple zone :(