Yes Bantari, that's pretty much the standard system. The downside of it is that it's just not possible to find a perfect value for the timeout. Either it is relatively short and it will be too short in many cases, or it is unreasonably long and thus leaves a lot of room for "grieving" (disconnect in anger rather than resign, two moves before the end... just so your opponent has to sit out the timeout). If we are talking about 5 minute blitz games with 15 minutes time outs or so, things start to become ridiculous. Even more so if you are allowed to disconnect and come back to the game more than once.

It also doesn't help if you just can't return to the game, e.g. because of a power outage, or because mother sent you to bed. I don't know if a system needs to account for such occurrences, but it seems that the KGS system explicitly does, so that would be a big change.

The KGS system is different to most others, and I do like it. I just think it needs refinements to avoid frustration and possible abuse (even on a very small scale... one should never stop the fight to avoid abuse in multiplayer rulesets ).