Only certain characters are good at 'jousting' online, and those are characters like Kage, Lei Fei, Jerky. Tho i think Lei Fei can require a lot of skills with stances, online people abuse a lot of his more straight forward advances.
I mean there IS frame loss and there ARE hitches, and while a few characters are relatively immune to it, most are not. If anything I would argue that DOA4 is better online cause ALL the characters work fine with lag.
Eduardo: Quest Mode has tiers, and Quest Mode has difficulty levels. I actually liked the difficulty in the PS3 version, I think the extra difficulty levels for quest mode in the 360 were a bit of a mistake.
Easy -- I cant imagine how easy this must be.
Normal -- 8th Dans dont even put up a fight wtf
Hard -- 8th-5th kyus are as tough as 3rd-6th Dans on the PS3, even the easiest arcade is fucking tough for a casual.
Something else after that didnt bother looking -- Omg this must just destroy.