I'm pretty sure the example in this article wouldn't confuse git: weirdness like this is the reason git has the "recursive" merge algorithm instead of just doing a plain three-way merge. A recursive merge basically tries to merge some of the parents together before doing the final merge, which resolves this sort of case.

I do criss-cross merges between git branches all the time with no ill effects. Maybe non-git VCSes can't handle this sort of thing.

You need to do criss-cross merges that revert previous commits on one or both sides of the merges. If you're not reverting you're not hitting Bram's corners.

This is a though corner case and I'm pretty sure you can confuse any source control system currently in production with cases like this. BitKeeper has some theoretical solutions, but we haven't gotten around to actually test them in production.