I spent about 10 years competing in amateur pool leagues and tournaments (8-ball) before getting into competitive pinball, which I've done now for 8 years, and in that time I haven't been able to shake the idea that a solid handicap system would be the best way to entice and increase participation in competitive pinball.
What exactly is a handicap system? It's an artificial means of leveling the playing field designed to increase competitiveness amongst all participants. The NFL does this in the form of a salary cap and the result has been less stacking of teams and more game by game competitiveness across the board... making it more enjoyable for the majority of fans. Pool leagues do this by requiring more wins from higher ranked players when they play against lower ranked players. Having such a a handicap system also provides a mechanism to avoid team stacking like the NFL salary cap. A good handicap system isn't drastic enough to alter the expected outcome a substantial amount, it's primarily to give the impression that everyone has a chance no matter the skill level, so the question is how to do this with pinball.
There are those that are opposed to handicap systems on principal, as if it is a punishment to the best players and a reward to the worst, reducing incentives of both to compete and improve. All I can say is that I've never heard this complaint in pool leagues and tournaments... the better players enjoy the extra challenge that they would otherwise not have when playing against a low ranked opponent. It gives low ranked players the impression that they actually have a chance if the ball bounces their way. Individual competitiveness exists with or without a handicap system... I'd assert there are as many uber-competitive players as there are players who aren't concerned about winning, and nothing will change that. The problem that comes with handicaps is sandbagging by those who like to game the system for unfair advantage, particularly at tournaments where money is on the line. The latter is not easy to deal with, but at some point it's obvious enough to be be dealt with by league and tournament operators on an individual basis.... statistics and reputations are easy enough to acquire.
Pinball handicaps are already in use in many different forms, usually by a ranking system used to match players of similar skill together, or applying a score differential, but I've seen nothing that comes close to being effective at allowing the best and worst to feel like competing with each other is anything but an exercise in futility.