Latency does have a impact on TCP transfers, now granted the difference between a oc-3 and oc-192 is negligible, but if you stack a lot of T1 connections back to back its going to be a factor in your max throughput across the path.
(Stats below might not exactly be accurate...snipped from another site)
DS3: (1500 bytes * 8 bits/byte) / 44040192 bits/sec = .27 ms (approx)
DS1: (1500 bytes * 8 bits/byte) / 1572864 bits/sec = 8 ms (approx)
DS0: (1500 bytes * 8 bits/byte) / 65536 bits/sec = 183 ms (approx)
If you don't think it does then run some ftp transfers end to end with 1ms of delay, and with 100ms, 200ms, 500ms, 1000 ms
I never said that .002 microseconds is going to have a noticeable difference, but those 10ms - 20ms hops starts to add up. As well as propagation delay as you stated.
-C