Technically, 'yes', but with huge caveats. You will still show player movement at the same 'latency', just _less than a full simulation frames worth_.

The benefits _far_ outweigh the costs of the other options. Games look _horrible_ if you render the physics at a different frame rate than the rest of the game. Like, horridly bad.

It will keep latency constant, at right the amount you tested the game with.