No. Simply no. It is not expected. What is expected in the year 2011 is the ability to make P2P work consistently. I've said it before in another thread, take Reach for a spin and you'll see that, when properly done, a P2P online game CAN and DOES run smooth. Whether the game needs to use the best host, or the netcoding needs to be tweaked, I fully expect new games to run loads better on a P2P then I have recently seen. And as I said before, dedicated servers would be even better. It's time for these game companies to take a note from Bungie and how they've always had great P2P online MM.
I've had horrible lag with Reach and disconnect problems so I really don't get your point. Also Bungie's matchmaking svcks. Do I deal with it and keep playing? Yes. So if you lag, then GET OVER IT.