Someone finally restarted the server, may his name be heard and praised throughout whole Calradia. For a brief period of time game was an absolute joy to play, sped up considerably (restart have this effect), perfectly responsive, ping did spike a bit (this goes on my connection) but that didn't have any visible effects on my game. After I don't know how much, I've again managed to successfully block few players manually without them phasing through me and ripping me to shreds.
Before I left the server, think the "mud factor" came back. Not sure, need to test more. Anyway, proper game is a joy to play, very responsive. Typical cRPG since I came back (October 2014) is slow and every action has annoying delay attached to it, even movement feels off.
For some reason this never lasts in cRPG, this wonderful feeling immediately after server restart. cRPG was always lacking in responsiveness compared to good native server, not sure what is the cause and why it manifest itself after some time after restart. But this lack of responsiveness I'm talking about it typical for cRPG of the past, not this annoying lag that has been constant as of late. I'll be more than satisfied with the responsiveness of the old cRPG.