Still produces food?
Then we should play with spawns off, and I forget what things you can control - but capsules on... (if nothing for capsules, I know there is for crates...). Capsules would be empty, so bringing up the argument of smashballs and ray guns isn't worth noting. The capsule is either explosive or it's not.
IIRC Peach pulls Beam Swords and Bob-ombs even with items off? (Or is this just Bob-ombs?) So it seems like an unneeded nerf to King DDD with no real good backing to support it other than "Because we can control this random factor unlike the others", which boils down to
"We can control it"
Which, if given that logic, means we should play 2 stock and 1.1 Knockback Ratio.
EDIT:
I don't see how capsules could be worse than Gordo's - in fact this can be seen as a Nerf to DDD by adding in another random variable. But then again, we relinquished our control over the Ganoncide/Bowsercide variables... so why not this one?