To illustrate with arbitrary numbers, if HFT’s currently focus on 50% strategy (i.e., price competition and liquidity improvements) and 50% latency, a more optimal scenario would be 50% fewer HFT’s focusing 100% of their efforts on strategy.

Nitpicking - "more optimal" is non-sensical. Optimality is binary. You're either optimal or you're not. Of the sub-optimal cases there are better and worse options, but neither is "more optimal" than any other.