I would absolutely hate if they changed anything about failing leves. (With the exception of letting us choose from any leves we want instead of 3 random ones) My LS has been organizing leve runs around failing leves since the November patch. It's one of my favorite things to do in the game currently and is very rewarding. Sometimes we have two groups of 8 to 10 comprised of only folks from our LS multiple times per day. Check out our schedule to see how much it would affect me and my LS:

http://www.abaddon.us/phpBB3/calendar.php