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So if the merchant sees an attempted double-spend within 5 seconds they accept the bitcoins but don't give the merchandise/service/whatever.
That sounds like a good idea to me. Maybe instead of 5 seconds it aught to be "before the transaction is fully confirmed."
The only drawback I see is buggy clients that might have bugs that cause 'honest' double-spending mistakes.
Oh, and merchants would have to explain to customers whey they kept their double-spent coins (although the merchants could easily produce both transaction IDs to show the world that it WAS a double-spend, so they shouldn't have to worry about their reputation being sullied).