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Information about the true worth not withstanding, the smallest unit of time you can really say the valuation of something changes is when a transaction occurs IMO
This is obviously not true. Quotes provide information about value, not just trades (real world example — a futures exchange will demand margin from you based on the contract settlement price, which they can determine *even if no trades occur*)
Sure, I guess we can separate a quote which I'd say is a one-sided attempt at a transaction from a transaction. Although again I suppose this is semantics anyway, no?
As @MarkGutman9 says the key assumption of EMH is frictionless transmission of information, not frictionless trading. You can have an efficient market (in the sense of EMH) in the presence of transaction costs and market impact.
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