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Problem is, the speed of light just isn't fast enough. To run a game at 60 FPS with 2 frame latency, the data has 50 milliseconds to make its way from one computer to the screen of another computer across the planet.
In 50 milliseconds, light (or electricity or data) can travel about 15000 kilometers in a straight line through a vacuum. That's about twice as far as it is from my house to Spain. Problem is, the data isn't traveling in a straight line. There's not a cable directly connecting your computer to your friend's computer. A bunch of other computers in between need to figure out where to forward that data to, and the data isn't moving while they do that.
There are a few things you can try, but for the most part the answer is a very unhelpful "reduce the physical distance between the two computers".
If you have a significantly better internet connection than your friend, you could try hosting instead of them. The amount of data that needs to be sent by the player sharing their screen is much more than the amount of data sent by the player sharing their controller.
Another (probably very unhelpful) suggestion would be to play a game where latency matters less, or a game where the graphics are rendered locally and only the data is transmitted (AKA not using Steam Remote Play Together)
Having the internet work via routers rather than a single wire going to each computer you want to talk to just means the information has to travel along a very roundabout path - like how your digestive system doesn't send food straight down from your mouth to the other end, but with vastly more twists and turns.