Ya, this game is still completely broken. Me and a friend tried to join 8 games today, and every single game was laggy and dropped connection after 5 minutes or less. Every single one. After 30 minutes of trying to get a single decent game in we just gave up. The patch did nothing for the lag. The server browser still sucks too, we each have to refresh the list about 3 times until we actually can see the same games because most of the time only 2 or 3 will come up when there are dozens more out there.
It's incredibly frustrating because the game is FUN, it's just complete shit on the 360. Valve chews, sucks and swallows donkey ass when it comes to coding on consoles. COD4 and Halo 3 have little to no problems with user hosting on 16 player games, TF2 can't even manage an 8 or 10 player match without everything going down the shitter.