If that is the case, why should I switch to a terminal with lower latency?

I use Alacritty as well and for me I care about having a low latency of response when I press Ctrl-C after I accidentally cat a huge text file. I want my key press to be acted upon immediately and that I want the pages and pages of text to finish rendering quickly so I can get back to my shell prompt.

When I did a quick test two years ago, Alacritty outperformed Gnome Terminal. Looking forward to trying this again when I update my system.

But you describe that you do perceive a latency difference.

My reaction is to someone who says you're unlikely to perceive latency difference when it gets better (lower).

Would you switch if ctrl-c wasn't reacting perceivably different?

No and it doesn't matter enough to me to try.