Yes, I spent quite a few years building and iterating on some quite elaborate mechanisms to handle latency too:
https://easel.games/docs/learn/multiplayer/rollback-netcode - it’s taken a lot of continual playtesting to discover and address many issues.
The multiplayer architecture is rollback netcode, which I think is great because it performs client-side prediction by running your full game simulation step forward on the full game state and not some subset or stripped-down version of the simulation or state. It’s the most accurate client-side prediction model you can have.
Then it achieves eventual state synchronisation by rolling back and rerunning your code when there is a prediction error. It performs automatic rubberbanding to smooth over the error corrections. All the bodies get rubberbanded, so as long as you attach your sprites to bodies (which is what you would normally do), the rubberbanding is automatic.
Rollback netcode is underutilised because it’s difficult to implement on other game engines. It requires your entire codebase and all your dependencies to be deterministic and snapshotable, and so if you’re using another engine like Unity or Godot, it won’t meet these requirements because it wasn’t designed for this. Products like Photon Quantum for Unity get around this by reimplementing all the systems like physics, RNGs and even just ArrayLists in their own deterministic manner. But you have to follow all these rules about writing your code in a multiplayer safe way and there are all these traps to avoid.
Putting the rollback netcode into the programming language means it always works 100% of the time and you can’t make a mistake, which means even a beginner programmer on their first day can make a multiplayer game. That was my ultimate goal and I think it is true that if someone who is an experienced programmer wants to hand-code a specialised rollback netcode implementation for their game then they might be able to do a better job on their game. But the defaults are really good when the rollback netcode is in the language itself and I’ve had teenagers make multiplayer games that they play with their whole class and they’ve all had a lot of fun, and that’s the main thing.