Ah, but amortization matters! If both loans end up paying equal amounts of interest on the same schedule, then no, there's no pragmatic difference. OTOH, if the 25-year loan is amortized such that you recoup most of your profit in the first third of the loan term, while my escrow increases in inverse proportion to the interest claimed by you - well, I have to decide if having you claim your share of the resale profit 10 years before I do is worth it to me.
I tend to think of it as "how much total interest is charged relative to the principal, and does that amount constitute a reasonable service charge and inflation hedge for the lender?"
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I tend to think of it as "how much total interest is charged relative to the principal, and does that amount constitute a reasonable service charge and inflation hedge for the lender?"