The critique centers on the variability of latency based on geographic location and the potential for optimization through strategic colocation of resources. A scenario is presented to illustrate the challenge: if a mining operation with 100% of the network's hashrate and a latency of 1ms is joined by a new miner from a geographically distant location with half the original hashrate and a latency of 300ms, the mechanism for adjusting difficulty in response to these changes is questioned. The adjustment speculated involves a significant increase in difficulty proportional to the increased latency and added hashrate.

Further exploration into this situation considers the dynamic between these two miners, particularly if the dominant miner chooses to disregard blocks mined by the newcomer, especially if the newcomer's block chain falls significantly behind in terms of work completed. This raises questions about how such an algorithm would manage disparities in blockchain progress due to latency.

Lastly, the conversation extends into a hypothetical interplanetary mining context, where hashrate distribution is evenly split between Earth and Mars, introducing even greater latency variations ranging from three to twenty minutes. This speculative scenario underscores the complexities and potential adaptability of the proposed system in managing latency in vastly different operational contexts, hinting at its innovative yet untested nature.