I found my post where I had analyzed this paper on May 14.
Well I see as January 2014, others below started to expound upon what I had explained in November 2013 at the threads given by the quoted links above.
On The Longest Chain Rule and Programmed
Self-Destruction of Crypto Currencies...
The rest of the point of the above paper regarding tx timestampes is really a flawed ad hoc way of attempting to achieve the decentralization that the prior sentence would achieve more correctly.
http://arxiv.org/pdf/1405.0534.pdf#page=29A big question is whether timestamps are needed at all, see Section 7.3. An
alternative to timestamps could be various pure consensus mechanisms without
timestamps by which numerous network nodes would certify that that they have
seen one transaction earlier than another transaction. In this paper we take the
view that they should be present by default and further con rmed by (the same)
sorts of additional mechanisms.