Edit: Obviously, it still reacts doubly as bad to the base connection dropping packets. I recall testing once how a TCP connection behaves when you subject it to a random % of packet loss (regardless of bandwidth it tries to use), and it resulted in completely stalled connections at a surprisingly low drop rates.
Edit2: In case anyone wants to try themselves, here's how: https://www.pico.net/kb/how-can-i-simulate-delayed-and-dropp...