For applications that were written with X11 in mind it works much much better than that. One example was the controlling a telescope. The computers in the control room were thin clients pretty much and displayed various windows from various machines across the mountain - even across multiple different operating systems! Some machines were running Solaris and some linux. The different machines belonged to different aspects of the telescope: some controlled the telescope itself and some machines belonged to the different scientifc instruments on the telescope. And it all worked quite well with no real noticeable lag.