I don't think you have to worry about the delay. It looks there no actual delay in this netplay. When the connection does't do, instead of high delay or freezes the FPS will be drop, so you just can't play. Both player can run the game 500% offline, but if the connection doesnt do, the FPS will drop. In other words, if you can play in 60 fps, the delay doesn't matter...
Other useful info is: when the FPS stays in 4, the connection failed. Close everything and try again. Opening ports or using hamachi are may be required some times if you use a router. When the FPS stays in 9, there's a memory card conflict. Just remove the file inside the memorycard folder (ask your opponent to remove too).