There is a bunch of tricks that go into the netcode though. A slight delay on hit recognition is noticeable and sometimes annoying, but movement can be silky smooth. With Stadia, wouldn't that latency open you up to input lag?
I've used Parsec. It's not perfect, but better than a low to mid-range gaming machine.
The input delay isn't as much of a problem as bandwidth, but it could definitely be improved. The problems arise when setting it to 120+ FPS.
60FPS works surprisingly well, and for single player games you probably wouldn't even notice the input delay.
Of course there is, but there are some tricks also for it :) Modern software (and AI) can predict some user actions very precisely. Anyway, there will be input lag, without any doubts, even with the smartest AI, but for some games it's pretty acceptable. Especially for non-competitive ones.