"I can see doing trades in baskets of orders entered in say 60 second intervals and processed in random order inside the interval. That prevents a class system where guys with access to HFT have a shot at the getting in or out first all the time and moves it to where anyone with an Internet connection, a E-trade account, and a willingness to sit with three or four of the major news networks on a few tvs has a fair chance of transacting on whatever securities they are playing as quickly as anyone else. That seems okay."
Except anyone (human) won't submit 1000's of small trades to even the odds. You put a trade for 100 shares in as well as 99 other people buying ~100 - it's fair. My (previously used for HFT) computer submits 1000 lots of 25. Suddenly I might not get the full 100, I need to start cancelling when I get my quota, but I'm more likely to get my 100. If the computer plays it right, it could adjust the purchase quantity against projected movements. Add 1000 previously employed HF traders doing the same. Humans have a nigh-on impossible chance of getting a single trade, infact we'll end up in the same situation we're in now, where a large chunk of small trades are machines competing against machines.
Personally, I'm all for a 60sec hold before being able to sell. Give people a chance.