I propose a 1 hour ban from PvP if your ping goes above 500ms constantly.. Just look at the scoreboards, the people that red bar are usually up too and not because of skill. That's why the guardian code of conduct says tampering with your Internet is a bannable offense.
550ms is a very low threshold that most Internet users could reach.
If you don't believe me about lagging giving you a PvP advantage then you can try it yourself. It's like having an extra shield because the bullets get lost if your connection is crap.
Either fix the netcode or set temporary bans if a guardian doesn't reach the threshold.
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I can't help it if internet in Australia just sux. Been waiting years for the new high speed internet cables to be installed. (Or National Broadband Network as its called).