This is a pretty common complaint I hear on the DB server all the time.
The response is simply this: Actually,
your client sucks.
You fix it.
Enable your net_graph (or perhaps you already play with it enabled).
See that lerp value? If that value is anywhere below 30ms you are going to experience "rocket skipping" and other kinds of jittery lag.
Here's the problem: lots of dodgeball players like to believe they're experts in all things Source Engine Configuration, and share configs that set the cl_interp and cl_interp_ratio convars to absurd values that reduce or effectively disable interpolation.
Clientside interpolation exists for the purpose of smoothing out gameplay by maintaining an interpolation buffer of entity positions. Instead of displaying entities at the position they were when the server sent a packet to the client, the client will instead display entities X milliseconds (where X is your lerp value) in the past, so that if the server isn't able to send timely packets (or perhaps there's a period of increased loss or latency jitter) the client will smoothly interpolate entity positions to where they should have been (if that packet had arrived, etc).
By setting your cl_interp convars to low values, you are decreasing how much of a buffer the client gets to smooth out gameplay, and you
will experience "rocket skipping".
So do me a favor: before you complain that the server sucks, check that your client settings don't suck.