That has been accounted for.
" [Eve] does not, however, get to open the enveloped message."
> timeouts and defaults it can be
These time-outs and defaults would have to be negotiated between the generals over the postal system and wouldn't help them.
> as seen by many the distributed systems on the Internet
Those would have implemented a form of fault-tolerance for the more general "Byzantine Generals Problem."
Can you point me at an algorithm that guarantees consensus? Your claim seems to be at odds with the formal proof in the article. I particular, the article already allows for encryption, timeouts, and defaults.
So I can't see how you are right, and would appreciate some additional information as to why you think the article is wrong.
If it's pragmatic to dismiss impossibility results, perhaps revisit pragmatism.