The generated in time is the time it takes the server to generate the html. This has nothing to do with lag or ping. Your ping to the server won't include this time, however the time it takes the page to get to your screen = ping + generation time. As generation can only start when the request is recieved.
High generation times point to an overloaded server. High pings won't tell you much because often pings can be deflected by a router before it even gets to the server. And ping won't show you the generation time as it didn't request a page.
I want to make a further point to this, and that is generation times are much higher the more detail you have on the screen. Generation times with stock standard non-premium are like 20 - 50 ms.
I think that increasingly high generation times are going to seriously effect a players ability to snipe and time nukes. I think that the high volume of added data displayed is seriously adding a high toll on server performance. Also, another problem is, when worlds have less players with more villages, essentially less premium dollars are paying for the world which is still going to be pummelled around the clock. This could point to a viability issue of having so many world essentially running forever. I think that there seriously needs to be a look at ending an exact end date to each world, because the more worlds that are open means new worlds are opened less frequently.
New worlds should be opened one per month, with a maximum time limit of 2 years, meaning a circulation of 24 worlds. Or 3 years and 36 worlds.