I think what he's getting at is that all those files are being transmitted in addition to all the game data. While those with fast connections are probably better off, I can tell an immediate difference in the quality of my connection when I'm downloading skins. I would think, that no matter how fast the servers are, that a hundred files of several MBs in size going out to several hundred players simultaneously would have some sort of effect.
No idea how HTC sets their stuff up, just guessing at this.