It's a common misconception that this is only used in fighting games. This technique was developed first in Duke Nukem, and then exploited heavily by Carmack in Quake, and subsequently refined and built upon in other AAA FPS games, specifically for the local player movement and shooting.

I don't think it's quite the same. Rollback netcode is like lockstep netcode, where the entire game is simulated locally and only inputs are networked. Since it's still only input being networked, network drops (or slow computers) affect everyone, requiring the simulation to slow down. Not just fighting games, but RTS games would do this. If you've ever played Starcraft/Warcraft 3 where it would freeze when a player disconnected.

With rollback/lockstep, there's no need for a server simulation at all. Most games are not doing that: the client's local simulations are less important than the server's simulation, even missing information (good to prevent wallhacks). Any dropped packets are handled with the server telling the client the exact positions of everything, leading to warping. Dropped packets and latency also only affect the problem player, rather than pausing everyone's simulations.