Every statement you send to the DBMS must be parsed. So you send the DBMS your SQL and the DBMS says: "Ah an update. Which table? The latency_table. Which rows? Row ID 1. Let's think about how to get there quickly... Do I have an index? Yes, so for one row it makes sense to use it. What columns to update and with which values? Column is_active and null. Okay. Let's do this."
For the single statements you do this about 500 times. For the second just once.
Then you fire the statement from somewhere. So that somewhere must talk to the DBMS: "Hey, I have a statement for you". - "Thank you, I've just checked it. It looks okay." - "Alright, then please execute it." - "Done. Your update affected 500 rows." This happens for whichever app, even if this is some DB tool like phpmyadmin. This is called round trips. This smalltalk happens for every statement you send.
At last, with single statements you don't give the DBMS any chance to optimize. Let's say you are updating 500 rows ot of 600. That's almost all rows. If you send a single update, the DBMS will search this one record. If there is an index, it will quickly find it by binary search (Look at row #300. Smaller? Look at row 150. Greater? Look at row 225...) Otherwise it must read the whole table. For every single statement. 500 times. If you send only one statement for 500 rows, the DBMS will certainly notice that it would be a hassle to run through the index for every rule ID and would rather just read the table sequentially once and be done.
Maybe the DBMS can even execute your statement parallelized. Four CPU cores? Then every CPU core may care about 150 of the records at the same time.
So: Many reasons to do this in one single update statement. And this is what SQL is all about after all. Don't worry about how the DBMS might approach the problem. Tell it what to do (update those 500 rows) and not how to (one by one). It may even decide to execute the 500 rows as if you had send 500 single statements and still be a lot faster, because of parsing only once and doing far less round trips.