it does not seem to matter really...
«I think to get an accurate score from thumboard users is to make it so we have to backspace and retype the correct key or it won't let us move to the next word. I think I would only get 50-60 wpm on a test like this. »
Let's try to evaluate the impact of having to do five backspaces: this would mean typing 187 characters instead of 182. If we assume proportionality, the time of 34.06s would become 34.99s. So the speed of 70.46 wpm would become 68.58 wpm which is still phenomenal and higher than the 50-60 you hypothesized.
In reality, I still think that it likely took more than one or two seconds to react to the bips — perhaps half a second per bip if you are able to react very quickly. My contention therefore remains that bips are enough of a penalty by themselves and we may as well leave the rules as initially defined and accept any run that completes whether there are bips or not.