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For fast-paced games, there is one big problem with the flow shown on this diagram, and the name of the problem is “latency” (a.k.a. 'input lag')

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No, better bandwidth doesn't necessarily mean better latency

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From the 50'000-feet point of view, 90% of the differences between modern mainstream programming languages (as they're normally used - or better to say, SHOULD be used - at application-level) are minor or superficial.

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On the server side (unlike client-side) protection from bot writers is not an issue (as server-side code is never exposed to players)

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With 'callback pyramid' it is not easy to express the concept of 'wait for more than one thing to complete' , which leads to unnecessary sequencing, adding to latencies (which may or may not be a problem for your purposes, but still a thing to keep in mind).

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Don't even think of converting all of your code to a so-called Continuation-Passing-Style

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After your logic has failed in production, you can “replay” this inputs-log on your functionally identical in-house system, and the bug will be reproduced at the very same point where it has originally happened.

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You can implement your Finite State Machine as a deterministic variation of a usual event-driven program