Yeah, the games netcode blows. It has not really been addressed that they are working on improving it any. The patch helped it get from unplayable to mostly unplayable.
There hasn't been a followup since the stickied thread, so we can only assume that since there hasn't been an official response to complaints post-patch, that they might just move on and leave kof in the dust. (which I hope is not the case, since I love supporting Atlus)