Some of these signaling errata caused by disparity in timings can be resolved by using a shorter IDE cable (18" instead of 24") and swapping connector positions on the cable (in addition to using an Ultra-ATA cable from a good vendor). One of the connectors on an IDE cable, either the end or middle connector, I forget which now, has tighter signaling margins than the other and this can be exploited to compensate for the disparity in timing between two drives.
I discussed this at some length with Quantum's Kent Pryor and Eric Kvamme (both major contributors to T13) a few years ago now. Their take on this issue was that in the majority of cases they have seen these problems rear their ugly head, given all relevant components of the system are billed Ultra-ATA compliant, it is usually traced to a vendor's design that results in unforgiving electrical or signaling properties.
Both were quite adamant that, although things do get tight on the upper end of UDMA, Quantum has proven there is adequate margins to accomodate for different drive modes from UDMA-5 (highest at the time of our discussion) down to MWDMA-2, if only every interested party made compatibility as much of a priority as others.
It does not help that so many ATAPI drive vendors refused for so long to adopt the UDMA/33 interface over MWDMA-2, since their drives didn't require more than 16.6MB/sec. Even today, there are a few ATAPI vendors who limit their interface to MWDMA-2.
But you are correct that issues can arise and some vendors have simply resorted to negotiating a safer mode through their driver or firmware when certain criteria are present such as a drive that reports no higher than MWDMA-2. Of course, all bets are off when attaching ancient PIO mode devices.