When Goku says time doesn't exist in the Other World, he's referring to the fact that inhabitants of the Other World are already dead and are, thus, functionally immortal, meaning they have what is essentially unlimited time to spend, rendering exhaustion, for example, insignificant. Moreover, the bodies of the dead evidently expend less energy than the bodies of the living, as stated by Goku during the battle with Kid Buu. If time didn't exist, then King Yemma wouldn't've been able to cross Snake Way "in just the past hundred million years"; Goku wouldn't've been able to increase his abilities or experience the year progressing as he traveled across Snake Way; and Vegeta wouldn't've been able to observe the events transpiring concurrently in the Living World; and Frieza, in Hell, wouldn't've been able to grow rusty or then later train his Golden Frieza form.
First: Goku didn't say about their time but about time in the mortal world as it was referred to him losing more energy in the mortal world because there is time in the mortal world, when in the Afterlife there is no time and he can use it without losing energy. And it doesn't refferering to his time limit in the mortal world as Uranai Baba doesn't revive or do anything with souls from the Afterlife, she just travel them from the Afterlife to mortal world(as it was stated in original DB) by going through the barrier. So there was no limitations for Goku except the fact mortal world had time, which was the reason for Goku losing energy in SS3
Second: I already reviewed the fact about time in Afterlife [There are some statements about time and distance measurements in Afterlife, however in Buu saga it was stated that
time measurement is made by Mortal worlds time, which is accurate as every such statement is connected to Mortal World and not Afterlife's time(because it doesn't have one).] So Afterlife just follows Mortal worlds time as the Afterlife itself doesn't has one, but via timeline(
which has time and spaceless too World Void in it) that makes everything go in one specific way in history for every dimension in it. The same thing we can apply to World of Void which didn't have time but via timeline action in it happened at the same maner as in mortal world(we even saw how people from universe 2 in anime was watching the tornament in World of Void while being in the mortal world).
Goku has a physical body and interacts with the world physically. Hell, even when he is alive, Goku can travel to King Kai and interact with his planet. Physically.
I reviewed that too in my blog.
[Some might ask, how people from other world can enter Afterlife and leave it? The answer is in Daizenshu and Chozenshu.
Afterlife can be visited
by dead people and those
who has permission from the Afterlife. But even if you don't has permission and enter the Afterlife via Shunkan Ido or Kai Kai, you still bypass the barrier, which makes your existence simillar to soul(the same thing probably happens with those who has permission) as it's shown here:
Scan
Translation:
Title: THE WORLD AFTER DEATH (Scheme 3)
This world (The World of the Living - the lower part)
All living beings:The lower circle on the scheme.
Process: When a living being dies, it becomes a soul and goes to the World of Enma, which is located in the Otherworld.
Transition:An upward arrow with the text "Become souls."
Judgment in the Palace (Center)
As it shows how by traveling in the Afterlife and bypassing the barrier(wave thing) the person's existence becomes like soul's, as it comes from the Mortal world, which is shown flat(2D), to Afterlife, which is shown as 3D objects in contrast to Mortal World]
And you didn't even address it. Seriously, you should read it more properly
I genuinely do not understand how you can read one statement say: "The world of Dragon Ball extends without end and has a truly limitless scale that goes beyond human comprehension," and then read another statement saying: "Heavenly land higher than the sky, transcends dimension and can't be perceived from the human world," and deduce that the Other World is qualitatively superior to the Living World and not the Other World is a separate dimension from the Living World.
Those are more add on statements, when the main thing is shockwave moment. Also the first one talks about the scale, not just the separation, and the second one depends on the person's interpretation as the translator said
["Transcends dimensions" in original 次元を超越した天の国 can be interpreted by many ways: Word 次元 can mean "dimensionality" in mathematical way, or dimension( length, width, height). But it has third meaning: "point of view", "perspective". 次元を超越した天の国 - "transcends point of view", if literally. Probably, it means it's a place that is impossible to see/understand from human world. But why is unclear. Either it's something with dimensionality or it just can't be perceived cuz it's beyond human comprehension"]