You know what I'd love to see? This is sort of an aside, but your settings made me think of it. User storable profiles, sort of like Director's Cut. 9 slots say, where I could store a particular set of settings in memory. Slot 1: SKB Settings. Then you could store and flip between different ideas. Anyways ...
I think you guys are nailing the issues, what I would add isn't so much 'rules' code, but the audio and feedback. Like this comment:
Quoted from Rcade:
if they tighten it up a bit and make the experience more immersive with the callouts and dots, then it would be a great mode.
I feel that way about the whole game. Like for instance, this is a game that's entirely based around making combos, and yet, if you don't happen to catch the text on the DMD (and if you're playing fast and hard how would you) you really have no feedback when you're rocking the combos. It's just shoot lit shot, oh, that one has red under it, shoot that one too, okay, shoot that shot, and there's nothing that feels like you're nailing it. Make it, miss it, no difference.
When you're fighting Vengeance for example, I love that the tone you get after every hit rises. You feel like you're building up something every time you nail it. I want the rest of the game to give you that same feeling.
On the flip side, there's just too much damn audio for the level one modes. It's too easy to get sick to death of hearing Kirk talk about running through the jungle wearing a disguise. That's not even touching the "they're right behind you Captain, run!" line.
I'm hopeful that bringing in Karl Urban is going to solve a lot of this.