That feature is pretty neat, and I am already considering applying it to units that use the loftemp hack, as I hate that mechanic.
The one drawback is the way reaction work (in a sort of exaggerated example):
Currently, let's say a normal chryssalid walks towards you, as soon as its reactions * TUs drop below yours, you take a snapshot, which drops your reactions * TUs below theirs. Since they are pretty far, your snapshot misses. Then they continue approaching until you get another snapshot in, then they reach you and you die.
With the new mechanic, the chryssalid walks towards you and you don't see it, so you do nothing. Then you finally notice it right in front of you and since you didn't shoot before, you still have enough TUs for 2 snap shots at point blank, which both hit and kill the beastie. You live. Camo didn't help..
What we need to complement this is a mechanic that reduces the amount of reaction fire done, something like:
sneaky: X , where default X is 0. Then in the computation, when being considered as a target for reaction fire, you get (reactions + sneaky) * TUs to compare to the enemy's reactions * TUs.
The reason to ask for this and not just buff reactions outright is that it allows to buff "offensive reactions" (your ability to not be fired upon when moving) without buffing "defensive reactions" (your ability to take a shot when others are moving). This allows you to make sneaky outfits (+sneaky but not reactions: you can move more safely and benefit from camo without what I described above, but you don't have better reflexes), as well as quick reflex outfits (buff reactions by +X, but sneaky -Y, so you react to enemies better, but you're not any harder to react to. Assassin outfit would be an example of a non-sneaky, quick reaction one) and obviously the stereotypical ninja (with just + reactions).
Edit: But seeing Yankes' post, it seems like it may be possible to adjust reactions in scripts? I'd have to look.