Earlier quoted context omitted.
That's not intrinsic to this style of netcode, though. Company of Heroes, for instance, just keeps the game running and your input is delayed until you can communicate it to the server. You'd generally want an authoritative server to accomplish this. Having it also execute the inputs prevents most cheating, too.
It is, in fact, inherent to this model. While there will be some tolerance threshold as to how far behind in the simulation a machine may fall, it still must be rather conservative (generally a few seconds), as elsewise the context (state-) sensitive inputs start frequently failing -- if I issue a command given at world-state time t , will it be meaningful/valid at state t2 ? The answer is where you get your threshol…
I've built and licensed a time traveling variant of this model (GGPO style) and spent years with thousands of concurrent users playing my games. And they operated just as I describe.
Company of Heroes is more of a traditional AoE style and will happily queue up unit orders for a minute or more while it attempts to reconnect or catch up.