[quote name='snowsquirrel']The movement lag is likely due to the deferred rendering technique they use, to leverage the cell to get the amazing lighting. Just a guess, but I have read a fair bit of tech docs on deferred rendering, and I think that this is likely it. It was most likely a concious design decision by GG.
They might be able to tweak it better, but I would guess that it is likely a fact of life.
~S[/QUOTE]
I don't think it's because of the processing since the lag is noticeably less on multiplayer.
I think they just went about it wrong, after reading some comments from GG, it sounded like this was their method for forcing you to use a lower sensitivity setting. After all, the lower your sensitivity is, the easier it is to compensate for the delay.
I think they should just patch it to simply let people choose whether they want it laggy or not. I'm almost 100% certain the game will be much more fun with it not laggy.
As for the last level, now that was a fun level

Though I noticed throughout the game the difficulty of fighting against rocket launchers. They were a pain in the butt in killzone liberation as well.