1. There are still some devices designed for lan-only use that assume packet loss will be extremely rare.
2. TCP throughput suffers when non-congestion related packet-loss exceeds a fairly low value
2. TCP throughput suffers when non-congestion related packet-loss exceeds a fairly low value
Standards decisions should never be made to accommodate designers that want to assume there's effectively no packet loss.
Some degree of error correction is totally reasonable, but your first point is irrelevant to discussion.