> Can latex address this issue
yes
> or is it an underlying tex problem?
yes (but latex can try to work round it)
> Has anyone else noticed this?
yes
> Is there any potential cure?
yes

see the slides at

http://www.latex-project.org/talks/tug99.pdf

especially the slide with the competion, you'll see that this is the
subject of one of the questions...

David