Psychologically, we feel that lag reduces our flee rate because we are don't see what happened when we lag, we didn't felt the 'missing time' when we lag. We could have been fighting a monster for 10 seconds, we lagged approximately 4 seconds lets say. During the 10 seconds, our mind only reacts to the 6 seconds when we're not lagging. Thus it leads us to conclude that we actually died in 6 seconds.