I don't think it would be a huge issue with this either, but I'm also skeptical on how new players will rely a lot of the mechanic as a "jail-free" card whenever they're actually learning how to play DOA. That's the big issue for me at hand. I want players to actually learn to get into the game.
I'm not saying that there people shouldn't play to have fun, using it as their preference. By all means do so, but this option does make people lazy & force bad habits. With what Radiance & DEV are saying is the same thing that Ed Boon did for Injustice 2 & the NRS community. They have a competitive mode so that people who value all of their gear & armor that they earn in the multiverse mode won't interfere in the matches. They buff & nerf character strengths & weaknesses like damage output. This lets them know that the training wheels have to come off.
So, if Team Ninja took this approach like they did, this issue wouldn't be as problematic since it's setting the competitive standard for DOA, but I still wholeheartedly believe that it will serve as a crutch & will tell people that won't have to learn the 4-point holding system. Anytime you give access to a system mechanic like this to people, it does tend to have people lean away from the actual fighting game standards. I2 still has the division among their players. Most of them often rage quit,which is also something I think all fighting games should address. I think people who RQ should have a huge penalty, but I know that Disconnections can accidentally happen as well.