Performance

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Although this example was supplied as a simple template, it's worth using it as a link point to an OTN post where Randolf Geist explains how to ask for help when trying to sort out performance problems with a single SQL statement.

The Oak Table challenge is not currently live - it goes active when a group of members of the OakTable arrange to meet at a public event - but since that wasn't clear when you raised the question, here are a couple of thoughts.
 
First - The Oracle version number really matters in this one; there have been bugs with latching on the root block of an index - the most recent that I know of being when an index had been rebuilt. See this blog item  
 
Second - is the latching problem on the root block or on the leaf blocks ? If it's only on the root block then trying to spread the index entries across multiple leaf blocks isn't going to help anyway
 
Third - Using pctfree to limit the number of rows per block only works when you create or rebuild the index; if you're deleting and inserting rows in the batch then the pattern of activity may simply leave you with well-packed blocks after a very short time. (Possibly this is why you are rebuilding the index every two minutes - but that's likely to cause other, more significant, overheads anyway).
 
Fourth - your question suggests that  you're only using select statements against this table: if that's true I can't see how rebuilding the index every two minutes could help - unless you're on an old version of Oracle that had bugs that generated excessive read-consistent copies of blocks.