Okay, I spent an hour or so going back over the paper, trying to put special focus on the new additions on Recursive Subtype Constraint Entailment.
I was pretty happy with most of what I read (or maybe I'm just desparate to declare this thing finished), but I found myself going back over section 10.1 several times because I was confused by two things that looked like distinct conflicting "definitions" for the subtyping relation, <:
At one point, there is a line "The subtyping relation on T_Sigma is defined as follows. t <: t' iff ..."
and later there is the paragraph on Nonstructural subtyping which fixes Sigma = { \times, \to, \top, \bot } with latice ordering \bot <: \sigma, \sigma <: \top for all \sigma in \Sigma.
Did you mean to use the same "<:" in both places? Or are the second set of "<:"'s really analogous to the <:_B base type relation (or perhaps I should be calling it <:_\Sigma here)? I was confused by that, but ended up deciding that you must have not intended for the two notations to collide.
There are other changes to suggest, but they are merely suggestions or minor details, so I'll either make them directly myself or add "margin notes" for them.