1. This one is just plain wrong. SMG's had their bullet penetration nerfed with the last patch and can barely punch through anything now. Also the damage drop off for SMGs is way more than any AR. You might feel differently about it but the numbers don't match your feeling.
2. The only time that the FALs damage compares to the Ballista is if you aren't using the Ballista correctly. The Ballista is a OHK anywhere from the upper chest and up. It's a two hit kill anywhere else. The FAL is never a OHK. It's a two hit kill in the head and most of the time is a 3 to 4 hit kill.
The only place where we can agree is that lag is a real issue in online games and I'd rather see more research go into minimizing it than in new features. I understand that they have to put something new in the game to keep people buying it and that they may never be able to fully resolve lag but in a perfect world that's where I'd like to see a more noticeable focus placed.