How so? More committed / better players aim more precisely, and thus benefit the most from a system that judges their shots based on whether they hit the target on their screen - as opposed to a space some distance in front of their target, with the distance depending on their latency to the server (which of course varies depending on the server's location). On the other hand, worse players' aiming has a higher degree of luck/randomness, so it should be less affected by the target being off.
edit: Maybe you mean that lag compensation makes it harder to avoid others' shots. But does that really reward less skilled players? If anything it rewards players with higher ping, but that's not necessarily the same as worse or less committed. I suppose that really uncommitted players are more likely to try to game over some crappy Wi-Fi or even cellular connection, whereas for committed players, latency is more likely to result from distance. But that's a rather low threshold of commitment. In any case, having a really high ping comes with serious disadvantages, including rubber-banding, a harder time avoiding shots, a harder time aiming with anything that isn't lag compensated (e.g. projectiles), etc...
Also,
> High-budget games these days locate servers around the world, so that is not an issue.
Even assuming there are enough players to fill the severs, it's only a non-issue if you're matchmaking alone. If you want to play with specific people - through either a party system or traditional named/player-operated servers - and they happen to live far away, you can't avoid latency. Of course, there's always going to be some ping value beyond which the game isn't worth playing, even with lag compensation - but it's a higher value than without. And at intermediate levels of latency - say, 100ms - lag compensation can be the difference between a passable experience and an effectively perfect one.