"and why you're taking your chances using it for most production environments (though it's better than nothing)."
Actually, "better than nothing" is better expressed as "the only option" when the presences are geographically diverse. Hardware load balancers are great for a single point of presence, but a single point of presence is also a single point of failure.
There are plenty of big-dollar sites that use dns based traffic manipulation to good effect. They are the type of sites who know on an hourly basis if sales are off. It would seem that they are the last to be up for "taking your chances using it for most production environments". Indeed, they have reviewed their options carefully, selected the technology, and pay well for it. If they thought something was better they would leave in a heartbeat. The fact that they still choose to stay speaks volumes about real world usage.
Dns based failover does suffer from a certain amount of latency. There is no way around it. But, it is still the only viable approach to failover management in a multi-pop scenario. As the only option, it is far more than "better than nothing".