"... fixing lag/performance isn't a flick of a switch ..." - Other than sloppy, inefficient coding that adds to lag, Yes, it literally IS as easy as flipping a switch. It's called "load balancing", or "scaling". They CAN give us more bandwidth and eliminate lag ... and they do Exactly that a couple of times each day in increments depending upon server population, that's why lag disappears for about an half hour at a time a few times a day, and that's why we experience lag and Reduced Awareness on Evernight with less than 100 online. The higher quality hosting plan you have, the more bandwidth/CPU resources you get per person. The hosting plan they have is probably based on an "average" overall population density so less populated servers may not lag at all. I am pretty sure that we are currently on what is known as a "Budget" hosting plan so the more heavily populated servers suffer as a result.
So, yes, lag IS likely just being ignored, but probably not by SSG, they are the developers and don't hold the purse-strings and pay the bills. Ask LOTRO's new Owners, EG7 Global. Good luck with That.
(NOTE: as of the current time/date the main EG7 Global Website at https://www.enadglobal7.com has been taken OFFLINE) - it was working fine the last time I checked when they had just added LOTRO to their webpage. The error returned when you now try to visit the site is one generated by a website/page that no longer exists. Since the domain is paid for until October 2024 Hopefully this is just a temporary bug. (gulp)