I just came across and interesting demonstration by Microsoft. They have a touch screen setup with 1 ms latency which is could be around 100 times faster than the current commercial implementations. In many cases good is good enough, but in this case it might be that many games would really benefit from the lower latency.
For example our games Ironworm or Swingworm could probably become a bit more responsive and more intuitive to control with reduced lag. The games use something called a “mouse joint” from Box2D to attach a physics simulation object to the touch coordinates. This adds a certain “springyness” to the control mechanic. Without the touch input lag the controlling the worm might feel better as the “grip” would be a bit more firm and responsive. On the other hand the current lag could be beneficial as it puts some distance between the player’s finger and the controlled object and that improves visibility.
Low lag input is most likely something that touch device makers are trying to achieve in commercial devices all the time since in most cases input lag is a negative thing. 1ms latency is probably impossible in real world situations, but improvement from 100ms to 50ms would bring the control lag to par with consoles and PCs.