Using keyup makes no sense and is inconsistent with user expectations. For triggering actions (which includes normal typing), you only ever use keydown. (Well, there’s one exception for reasons unclear to me: activating a button by pressing Space. That triggers on keyup like how clicks are on release, while Enter triggers on keydown.) Keyup is limited to things where you’re constantly reacting to the state of a key, as is common in games.
This affects the functionality, too. It is in fact introducing latency by using keyup instead of keydown. Feels bad.
As a user, I’ve not thought too much about this before now. I agree with you mostly, but the keyup on space behaviour actually feels so innate I’d hate any change to it. Keydown on space is “jump”; nothing else.