You're right, interesting example! Although I'd prefer to "fix" this by incorporating first-class polymorphism [1] with MLsub - I guess non-polymorphic functions satisfying the constraint `(a -> b) & (b -> c)` are quite rare (although I'm sure that you can think of an example).
[1] https://github.com/tomprimozic/type-systems/tree/master/firs...
Edit: although on second thought, just first-class polymorphism isn't enough to fix this... any type system where the function `twice` has the same type as the function `three_times` will exhibit the same problem!