MOSH already exists, and it is a proper ssh-like protocol over UDP that takes advantage of the properties of UDP. It's great for use when traveling and being forced to use horrible high latency wireless connections.
MOSH is really a on-purpose "horrible SSH" as far as SSH goes, but it is instead intended to be what you actually need for remote, unstable, unreliable slow connections: a somewhat reponsive experience, a kinda of remote desktop protocol but for terminals, you only send the input and output deltas; you intentionally don't block waiting at any side for precise confirmation of every single byte in or out of a remote terminal.