So much ignorance of how network communications actually work going on in this thread.
Someone using a 'lag switch' would not benefit from it. The game would rubber band you back to the position you were at when you re-sync. Using it to avoid envrionmental damage or 'pass the ball after dieing' would not work either - these are things that the server controls. If the server thinks your dead, it automatically handles the ball being transferred, and any packets from a lagged client saying "Hey I'm passing the ball" are ignored (Server: Lol nope, you're dead son). Claims of this happening could be from passes being mid-air while the carrier dies (and could also be combined with the known bug of the pass circle not showing up, but rewatching this on video will clearly show the beacon of light over the carrier disappearing before they die, showing a pass).
Similarly, lagging yourself out in a fire trap would not help as the server would know where you are and still apply the damage, and your death.
Also, the 'lag attack' that you guys commonly see, the one which affects your framerates, is occured by the server loading a new instance of the warzone for another group of players. This has been noticed if you are the center of huttball at the time, you'll see a bunch of nametags pop up for a few seconds during the lag, then disappear. It also shows up in Novare, right in the center of the map where the speed boost is. Your client is loading, and then unloading the profiles of all these players. Why the system bothers sending this information to a completely different instance is just another case of this game's horribly inefficient coding.
Source: I'm a coder on an MMORPG Project.
You are a coder? I doubt it.
Little history lesson for you - lag switches are around since the days of Halo 2.
They worked then and they work now and they worked in many games inbetween.
The best defense against it is to immediately disconnect the user when the connection is throttled.
That's the approach many games have taken - LoL being one example.
Want easy proof that it works in swtor?
1) Find an aggressive mob.
2) Run towards it just before you aggro, then hit the lag switch
3) Keep running past it until you hit the "invisible wall".
4) Toggle the lag switch off and, voila, you are past it without getting aggroed and without getting rubberbanded.
It works every time - you probably could just disconnect/reconnect your cat6 cable to get the same results.
What works in PVE, works in PVP.
But using lag switches in PVP is harder because it requires some practice to get the timing right.
Hence, most cheaters prefer speedhack-type software because it is easier to use.
Now stop bs'ing people with false information!