>Does anybody ever notice how pings are very high, servers are very laggy, SNES emulators over the net run faster and if you run netstat the connection is TCP?

Pings and lag all can be very high depending on your geographical location. Besides, Jazz players are scattered all over the world which isn't good for your ping.
SNES emulators run faster because all they transmit are the keys being tapped (as a second joystick input). Jazz transmits way more than just key-taps.
As for TCP/IP, what else did you expect?

>Is the netcode incomplete or something? I think it is and is there anyone out there that could complete and implement bit on/offs instead of bytes?
It's not incomplete but it ain't optimal either. Maybe (big maybe) we could do some things when the source code is released. Other than that, you'll just have to live with it.