The reality is that these days there generally isn't any packet loss, so UDP vs TCP isn't such an issue as it might have been in the past. In fact TCP has a number of advantages these days such as easier firewall traversal, WebSockets, etc.
On the loopback port, sure. I work on protocols that use sketchy wifi on mobile units that roam among access points. Sometimes they roam into RF black holes. TCP is all kinds b0rk3d for what I am doing.
I'm not sure how UDP is going to help if you have no connectivity.
These days TCP copes as well as UDP with temporary complete loss of connectivity, due to fast recovery. It is really just packet loss that kills TCP, but that isn't generally an issue these days if you're in the USA/Canada/Europe/Japan/Korea/Australia, and your wifi isn't crapping out.