I'm personally for leaving the game on hard all around, but somehow disabling the increasing difficulty bit.
If Towny becomes a thing, you will never see my fluffy ass on the server ever again.
We've already established the protection thing.
If people don't want to be in SB or NB, I don't see why they can't just get a group of friends and build a pseudo-town with its own unique 'whitelist' thing in the Hinterlands or hell, even the nether. I don't see why we need to stray further from vanilla to lure in new people. Yes, people like modded Minecraft, but when people think of modded minecraft nowadays, they think of FTB, Crackpack, Tekkit, B-Team, etc. Plus, the more mods we have, the longer we have to wait to update the server, which if I recall correctly, was one of the things that irked people to death on the original T9K servers.