In my thought experiment, I visualize a photon traveling through space. The photon first travels through point A, which is far away from the sun. It then travels through point B, which is very close to the surface of the sun. Finally, the photon reaches point C, which could be the mirror of a telescope on the surface of the Earth.
The ‘Shapiro Time Delay’ predicts that the speed of the photon slows down while it grazes the surface of the sun (point B). This causes a delay in the arrival time of the photon at point C. This delay is caused by the fact that the curvature of space is greater at point B relative to points A and C (as explained by Einstein’s general theory of relativity). However, taking a ‘local’ measurement of the speed of any photon at points A, B or C will always be equal to c (speed of light).
Imagine taking one of the 4km arms of the LIGO detector and positioning it horizontally at point A. The laser light will bounce between the mirrors at the speed of light as expected. Now position the 4km arm at point B. The length of the arm will decrease slightly because of an increase in the curvature of space-time, but the laser light will also be traveling at a slower speed (according to the Shapiro Time Delay). This simultaneous decrease in length and decrease in photon speed is necessary to keep the local speed of light equal to c.
If a gravitational wave passing through a detector causes the length of an arm to decrease, the speed of the photons from the laser will correspondingly decrease as well (similar to positioning the arm at point B as described above). This causes the returning laser light from the two arms to always be in phase, which results in no detectable changes at the photo detector.
So my conclusion from this thought experiment is that interferometer-based detectors will always be unable to detect gravitational waves.
A more detailed description of this is available on my website.
http://www3.telus.net/foamyether/introduction-gra.html