TE Lag can go up to 117ms. That's for roughly 230ms ping. So as long as the ping is under 230ms, the game should run smoothly (if the ping is constant and symmetrical, & if the Lag is correctly set at start of the match). But all your reactions will be delayed, thus the impression of faster game.
Once the ping is above 230ms, the game doesn't add any further delay to your reactions ; instead, it'll run more slowly ; for example, at ~300ms, 1 second in-game will actually last about 1.5s in real life. Thus, it gives you much much more time to react.
One additional note : standing at 3 meters after the baseline to receive a 200km/h serve gives you roughly 0.80s to react & position yourself, so yes, 0.084s ( = 117ms - 33ms) is a big deal, that's more than 10% of the time consumed by the Lag.
Lastly, the Lag could be set high at beginning of match, with the ping going down after a while, thus the feeling to have a "fast" match even if the ping is low.