Latency and framerate drops are two different things. The reason chat blocking is "fixed" for facebook is because almost all pcs are faster than ipods nowadays. Stefan should update the engine to make computations and rendering on seperate loops, and for movement have a "delta timer" that moves you at (speed *frame render time). Rather than a fixed frame rate and move per frame(timeout)
Anyways slow internet or "latency" does not cause framerate drops. Poor device speed does, as the ipod has a weak processor/limited RAM.