Yeah, I avoid that spar room.
Really, I currently avoid all spar rooms, except for the streak spar.
Mainly because the streak spar has a faster walk speed, where you can actually dodge bullets.
As for the idea of adding a maximum latency requirement,
I wouldn't say it's outside of the realm of possibilities.
My only concern would be the server's ability to differentiate it's own(server) lag from client lag.
If it couldn't, then during times of server lag, it would prevent anybody from sparring.
It's not my area of expertise, but I imagine it would ping client latency by doing a check like so:
SERVER -> CLIENT -> SERVER.
If the server is lagging, obviously the connection's commute to and from the server would be delayed.
This would then create a false positive; flagging a non-lagger as a lagger.
Again- this is all speculation; I've got no clue how this actually works.
Somebody with some coding background would be better to address this concern.