memory latency vs. bandwidth

Ok, so, i've been wondering for quite a while why was ddr2 and especially ddr3 forced on the market so much? I mean, i remember my s939 dual core athlon64 3800+ pwned a fair bit of ddr2 offerings in synthetic benchies at the time, the biggest difference was obviously latency.

Theoretically, newer memory standards have much higher bandwidth but they suffer from increased latency, so my question is does this increased latency bottleneck the cpu in general usage like web browsers, media players, the resident OS processes and stuff. Also i think that, for example, the ai and physics in games work with small chunks of memory that only get slowed down by the latency but tbh, i have no friggin idea how would such software work so i'd like to hear an opinion from someone more educated on the topic.

Enlighten me

look back at the ddr 1 to 2 switch. same thing