There could be a mode where the display is V-synced, but the runtime returns a constant value for TimeDelta. For example, if TimeDelta always returns 0.01 regardless of the real value, the built in behaviors and any custom timedelta-based movements would be absolutely exact and work the same way every time.
Actually that makes some good sense. I'd been planning a platform game with movement similar to Flashback or Prince of Persia. Since this debate over pixel precision started, I was getting a little worried about how my engine might behave, as the movement of the player sprite is largely dependent on what animation frame is playing.
For instance, to jump and pull yourself up on a ledge, you have to be pixel-perfectly lined up with it underneath. In the original games this isn't too much of a problem because the tile width and the length of the player's walking animation are designed to complement each other, so you won't ever have to make tiny little taps to get lined up just right. The player sprite just naturally stops on the exact spot where they need to jump.
With Timedelta as it is now, and these arguments suggesting that the movement could cause the player sprite to be off by as much as ten pixels would make for a bit of a headache in workarounds. (Even though PoP is designed to line you up automatically, it's not 100% perfect. Sometimes he does get off-line with the edge of the tile and "teleports" slightly to the left or right when you jump. It looks a little funny.) Doable, to be sure, but if your fixed Timedelta solution works the way I think you're describing it, then that should make things a bit easier.