I think not giving a reward is pretty good. Let people just focus on roleplaying and having fun with it, instead of worrying whether they missed something, are on the wrong side or even missed getting the reward at the end. If there was a way to give select rewards to characters the GMs feel did a good job in roleplaying, though, doesn't have to be something big, maybe even just a mention, or a parade or holiday in their name (just kidding), that may give some incentive to try to stay in character? That type of effort may be best for the community to support, though. Someday, if there is ever a way to fix the lag, the event may move along more movie/book script-ishly, force everyone's settings down somehow maybe?