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A large part of the content is built around avoiding ground based abilities but there is very little correlation between where you appear on your screen and where the server says you are. Not surprising that there are issues this close to launch but FFARR's calling card was suppose to be quality and it's not like this wasn't pointed out to them months ago in beta.
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It's not lag, AOE's take into account pre cast not real time, if your in the aoe when the cast bar ends, and out when the animation goes off, you will still take damage.
By the way...your linking a level 34 fight, so don't speak for all the PvE of FFARR.
Played-Everything
Playing-LoL
Correct, it's actually far more noticeable in the lvl 50 version of the fight.
I have never had that happen to me as it is displayed in the video, but what I can say for fact is that when a red arrow points to you post enemy cast, you got caught in something. Could've just been the instance servers acting up lately, hence the 8 hour maint. going on right now.
Played-Everything
Playing-LoL
My experience is that you need to not be standing in the spot the instant that the red circle/line on the ground begins to fade (cast has completed).
Of course, depending on your lag, even that might not be enough. That can't really be helped though. If you're still standing there on the servers end, then you're there regardless of what you see on your screen. Going to be like that in any game.