What do you mean by "it always terminates by design?"
However, as the comments to the post say, the author should provide a proof that the "game physics" allows to construct a functioning latch from these logic gates.
Conditional loops are not essential: the lambda calculus is TC despite lacking any loop primitives.
In theory you can build a latch using only NAND gates, so it should be possible unless the gates that are demonstrated are flawed somehow, see my sibling comment.
However, as the comments to the post say, the author should provide a proof that the "game physics" allows to construct a functioning latch from these logic gates.
Conditional loops are not essential: the lambda calculus is TC despite lacking any loop primitives.