The Tech Report noticed Microsoft's Applied Sciences Group has created a video that illustrates the importance of low-latency touch interfaces. The company has set a touchscreen latency target of 1ms for the next decade.
Microsoft seems to understand the importance of low-latency touch interfaces, too. Its Applied Sciences Group has posted a video illustrating the lag associated with current touchscreen technology, which is purportedly around 100 ms, and compares it to examples with 50, 10, and only 1 ms of latency.
The demo uses a projection-based display to simulate the lower latencies, and the difference is palpable at each step along the way. I'm even surprised at how much lag I can see in the 10-ms setup, although it doesn't look like the delay would bother me while dragging around elements of a tablet UI.