The only occasional problem I'll experience with midi is if I unplug before sending a note-off for a note, then that note might forever be stuck on.
If I had to implement such things on top of an improved protocol, I would likely also ditch the serial link, ignore completely USB, and jump straight to Ethernet, which is damn fast, near realtime, supported pretty much everywhere (Ethernet switches would essentially work as MIDI Thru boxes) and free of royalties. Devices in the same local network wouldn't even need the transport and above layers to work, so latencies would be extremely low, but adding more IP stack layers would allow to remote things easily.
Incorrect :) MIDI OUT provides power. No power = disconnect.
That's not to mention that you don't need a signal for *physical disconnect Your stereo knows when you unplug headphones.
Moreover, MIDI is a digital signal which doesn't carry any status about the media it travels through; I mean, 10 seconds of nobody playing would appear identical to 10 seconds after a pulled cable.
And could optionally use ptp (precision time protocol) Ethernet interface so that the local network clocks are synced to sub-microsecond precision, and so can put timestamps on the midi messages so they can be properly sequenced.
And for increases reliability, incorporate with AVB which uses stream reservation to ensure priority packets can get sent.
Btw I think the hard part is probably not he implementation of Ethernet, but getting hardware vendors on board. Midi 2.0 needed a lot of companies to be on board for the change.
Perhaps if you make adapters and translate devices to help folks transition.
https://www.thomann.de/gb/bome_bomebox.htm
https://openmuse.org/transport/mip_oview.html
http://www.linuxsampler.org/ethernetmidi/
https://qmidinet.sourceforge.io/
etc.
If you're lucky the result will be in-time-ish, but it's never going to be sample accurate.
This actually matters for some applications, including sound design. If you trigger two samples with a variable offset you can get phase cancellation and other easily audible effects.
DAWs are sample accurate now, but 5-pin DIN MIDI 1.0 really isn't.