To address the OP:
-What is Custom Balance Switch?
-Hazards turned off except possibly on stages where the hazard is integral to the stage (Dreamland, PS2, Yoshi's Story etc.)
-Hard NO to Stage Morph, dunno why people are even talking about it.
-Yes definitely try 3 stock again.
-Smash meter banned to start with, if 3 stock proves to be too slow, consider trialing smash meter as a way of speeding up 3 stock games instead of needing to revert to 2 stock.
-I'm all for not using Omega/BF stages unless absolutely necessary.
EDIT: Also ^ @ what Pudge said. Hard to make a judgement call on stage list without playing them all first. Hence I didn't comment on it.