Steve,
I've rarely, if ever, met someone who played Pine Valley, who didn't have fun.
They may not have scored well, but in general, they had fun.
I think the key factor for having fun is width, and Pine Valley has plenty of width,
As to the binary nature of pass/fail, what you and others fail to grasp, is that having failed, you get another chance.
And lost balls are not an issue.
Rarely, if ever, do caddies lose a ball.
Since 1964, I've only had caddies lose a ball on me one time, and that was on a tee shot in # 7 that was just off the right side of the fairway.
We thought it might have ended up in the base of a bush just off the fairway, but we couldn't find it.
For purposes of this discussion, let's take, # 17.
After a decent tee shot you're left with a slightly uphill lie to a green elevated above you, fronted with a moat like bunker.
The distance is relatively short, wedge to 8-iron
So, your approach shot is a pass/fail test.
If you pass, you hit the green.
If you fail, depending upon the degree of failure, you have to recover.
At Pine Valley, failure is more harshly punished, placing a premium on "passing"
At Pine Valley there's a heightened pressure on the golfer as almost every hole presents this test, albeit in a different form.