It seems like it would be hard to balance settings like that when you add in the RPG elements of the game. I suppose they could make them work as a multiplier (x0.8 recharge, x1.5 damage, et cetera) But I'm not sure if blanket multipliers would preserve the balance SD is working so hard on.
I do like the idea of restricted weapons, but again, it might be unfair to certain builds, a grenade focused soldier having to avoid games that don't allow explosives for instance.
I don't know what they are working on exactly, but I'm pretty sure they'll figure it out. Extra Ability/pip recharge speed is pretty usefull when you want to play with more players (Otherwise people wouldn't be able to effectively hand out ammo/heal/...) It also worked with multipliers like you assumed.
As for weapon restrictions, it was mostly used to heavy weapons. Instead of having 3 panzefaust players, you could only have 1. It wasn't like: Panzerfaust = blocked.
However, I don't think you'll be able to tweak this on consoles as much as on PC. Consoles will probably have more standard settings, which are untweakable.