1) Advantage of nodes with low latency. Nodes that can reach the rest of the network quickly have more blocks on the main chain and less orphans.
Answer: This is already going on in the current bitcoin protocol. We don't improve things, but our modification doesn't hurt either.
Actually it makes the problem significantly worse as more orphans leads to more opportunities for a larger miner to have an advantage over a smaller one through orphans.
Note the equations for P(Q,L) in the
paper I'm working on analyzing centralization incentives - they all depend on the block interval in such a way that a smaller block interval makes the larger hashing power more significant.
I suggest you correct your post.