This hypothesis has been proposed before by the same team and then rejected. However I feel obliged to mention it as I'm sure that some readers will find it interesting and also because, if real, it would mean that LB1 is not an Homo erectus (maybe a cretin H. erectus?) nor a new species but a marginal representative of our own expansion in Eurasia and beyond.
However I am skeptic, specially because Oxnard fails to compare with Homo erectus.
Cretinism is a severe chronic medical condition caused by low iodine intake. Iodine is mostly ingested with drinking water and also from sea salt, but not refined table salt (unless enriched).
Judge yourself anyhow:
Charles Oxnard et al. Post-Cranial Skeletons of Hypothyroid Cretins Show a Similar Anatomical Mosaic as Homo floresiensis. PLoS ONE 2010. Open access.