I've seen the term on these forums, and until now didn't know what was being referenced. Now I think I do.
I'm in Murkmire (which I really enjoy), swimming towards a goal, and I couldn't get out of the water. Then I could swim through roots and rocks, and then I "fell through the floor" until the game warped me back to solid ground. That's when I asked in /zone about it, and someone said ~"that's the de-synching issue". Ah...
I putzed around for a bit until it stopped happening. Then about 10 minutes later, while trying to retrieve a seed-doll, I got killed because of the de-sync. Truly a miserably experience.
I can only imagine how complex a piece of networked-software like ESO is. I can further imagine, based on my own experiences as a software-developer, that there are (or were) developers on the ESO-team that are genuinely trying to fix things, and "management" is flat telling them "no".
I'm also willing to believe, again based on my experiences developing software in a "team", that there are actually individual(s) who will subtly sabotage their mates, and ultimately the project.
I got into the ESO game late, and up until this night, have had an amazing experience.
My heart goes out to the writers, artists, voice-actors, programmers, network-engineers, etc., who are probably fighting an un-winnable fight.
In the end, I suppose Sithis comes for us all.