The idea is to give a playing field as level as possible to all miners, i.e., to reduce the advantage of larger miners as much as possible. There are some inherent advantages of scale, unfortunately, but minimizing latency is one that we can help with at network level.

It is impossible to give an advantage to small miners, as large miners could always operate as if they were multiple small miners.

As the Localhost Research post points out, Stratum v2 and DATUM might help because they make allow miners to construct their own block templates while still operating as a part of a pool.

But I think the Bitcoin protocol itself has kind of baked-in the problems with variance and latency.