While playing on a server with this mod, an issue of surface sinkholes has popped up. A lot of caves near the surface, but not exposed to it will have only dirt roofs. This means simple acts of breaking flowers or grass or melons or tree trunks can suddenly cause a collapse of all surrounding ground. While some could argue this is just adding to the difficulty, the fact that there's no way to tell when it's actually going to happen and it's unavoidableness just comes off as unfair. Maybe an inclusion for terrain to generate more stone on the roofs of caves that aren't exposed to the surface could help balance it out? Or maybe even lighter than that would be include some eerie noises like what is found near collapsible sand dunes.

This is due to only updating nearby blocks on block updates (updates include breaking, placing, etc.), and applies gravity to nearby dirt/cobble/whatever's in the config.

You could consider using a different world generator (that perhaps includes the fact that dirt/cobble have gravity) or simply remove dirt from blocks that have gravity. Or turning down suffocation damage, depending on what the issue really is.

While some could argue this is just adding to the difficulty

I believe it is mentioned as such in the playlist of videos for this plugin made years ago. Though it's obviously demoed as being a potential issue in caves.

Or maybe even lighter than that would be include some eerie noises like what is found near collapsible sand dunes.

This is likely done by the client when detecting "floating" sand.