to be honest "real local talent" in mvc1 pales in comparison to foreign own. Ultima could probably shed some light on this better than I can. Trinis seem to be bound by "scrubs honor" (ie no throwing, no infinites, no anything that helps them win efficiently) which is why we usually get destroyed otherwise, of course there are always exceptions.
Local talent in MvC1 isn't bad. Not great, but not bad. They seem to be better with weaker characters (or at least, too many people swear by Spider-Man, and he's terrible in MvC), and I haven't seen anyone with a good War Machine, RV, Wolverine, or an especially good Strider as yet.
MVC1 is on GGPO, I was running some pretty lagless vampire savior on that yesterday vs some dude from the states. NO LAG whatsoever, also got my ass whooped, it was great