While time stamping solves the problem of inconsistent quotes, it does not do anything against bogus trades or somebody accidentally adding an extra 0 when typing in their data.

A circuit breaker would prevent the absolute free-fall that happened during the flash crash. At that stage, nobody knew what the "real" price of a stock was and everybody was guessing, the algos could not handle the situation. If a circuit breaker was triggered, it would lead to a trading halt on the stock and an auction to set the price.

Time stamping quotes solves system errors, but not mistrades or market panic.