You are on the right track with this option, IMHO. I have my pins set up fairly hard physically to keep my competitive pinheads challenged (and not playing tons of games on a single buy in) I limit extra balls to one per game, score&GC replays award one credit, and I keep match replays set a hair below factory settings. I keep the factory 3 plays for $2 on all my modern pins, and (I know most OPs will say I’m nuts for this) keep all my “old” B/W pins set to $.50 to $.75 a game. Casual/nostalgia players already think that pinball is nothing more than luck and good reflexes, if you allow them to keep playing after they fail, or “get screwed” they are more likely to grab another drink “helping your location” and pop another $.50 to a dollar (helping you) into a machine.
I can’t tell you how many times I get complaints about Twilight Zone and Addams Family “stealing” their balls after missing one shot and draining and not getting another ball to play.
The bottom line is you are the guy shelling out the cash for these games. It’s a balancing act, you need to keep any hard core players you might have happy, while keeping new/novice/casual players happy, and your location making money on bar sales.
Good luck man, and thanks for helping to keeping pinball alive and in the wild,