Let me put this very simply. Whoever's nose hits loses. No matter what. Thus the danger in HO's as both noses face possible collision. If one turns just enough that the other noses into his wing, the guy who hits the wing loses.
If your nose hits any part of an enemy plane you will lose. As long as his nose doesn't hit he'll fly away.
The Internet lag theory is a crock. Maybe HT explained it to you all that way and maybe he thought it was that way. I'm assuming he's got other people doing programming and it wouldn't be the fist time an employee snowballed his or her boss. If so, HT, did you actually take the time to read the code? Believe me, I'm not calling you out, just calling it as I see it.
Go into the arena, get into a collision or two and prove me wrong. I'll bet I'm right every time.