This is very good insight and I suppose lot of people would be facing the same issues.
I think latency is an issue when you use Lambdas for sync operations. Fundamentally when using serverless, I think your application should become fully async i.e. event-driven. You may look at the 3factor pattern[1] to see if it's any better. Basically, 3factor says that all you should do in your application is simple operations, like CRUD, and emit events which trigger serverless functions (which create more events and so on). You should asynchronously receive updates via something like realtime GraphQL.
I think latency is an issue when you use Lambdas for sync operations. Fundamentally when using serverless, I think your application should become fully async i.e. event-driven. You may look at the 3factor pattern[1] to see if it's any better. Basically, 3factor says that all you should do in your application is simple operations, like CRUD, and emit events which trigger serverless functions (which create more events and so on). You should asynchronously receive updates via something like realtime GraphQL.
[1] https://3factor.app