Personally I've often wondered why the Ironman mode was never implemented as well. It seems like there would definitely be enough "interest" for those who seek more challenge in their own games.
I'd definitely support it as an optional choice. IMO it really would be a good way to implement "difficulty slider mechanics" in online games, considering once you've chosen, you're locked into the choice.
Scale "reward" according to the challenge being requested by the player- it's no different from cherry-picking missions or quests in any game. While one could argue which "activities" deserve more or less, having damage mechanics where someone is putting up their entire "pilot experience" as an ante is really difficult to argue against, because it's not simply relegated to a single activity. That would definitely deserve a "base bonus", IMO.
Hell, I might even be tempted to partake in such with a new save.
I did start a thread over at https://forums.frontier.co.uk/showthread.php/470796-Frontier-what-ever-happened-to
Been some interesting replies so far from people.