It's certainly not a problem worth dividing the player base over.
Ok. The ping time applies in both directions. If you're at 120 ping, that's almost a 1/4 second delay before factoring in any human reaction time.
For a bronze level player, that won't make much of a difference. For higher level players where timing is critical a 1/4 second is the difference between winning a team fight and losing a team fight. It's the difference between landing a skillshot or missing a skillshot. It's the difference between executing a dragon smite steal or feeding the enemy team a free kill.
And this isn't even getting into the random lag spikes and lost connections caused from having oversubscribed servers.
If this wasn't such a big deal, then we'd see Riot holding championship matches all over the place without needing a LAN setup. It would be "fair" no matter where you physically were. But that isn't the case. Not by a long shot.