TL;DR: personal preference; I like the Kiwi model.
You can operate both options in the same event by simply having two classes people select from. Open Class and Black Out Class where your Spot can't move between midnight and say 5am or whatever seems reasonable. Nobody really has to enforce anything other than look at the overnight Spot data for people in the lead and maintaining an extra set of course records. We seem to be doing the first anyways without being asked to do so.

Ultimately it's the racers who should decide if they want to see another "official" option.
I'm glad Seb got a fork and is moving again. A broken fork is every riders nightmare. I'm glad he wasn't hurt.

-- Vik