I feel that for a randomizer DM, one life works the best. It forces you to work with what you're given and assess the strengths and weaknesses of your items and the items of those around you, instead of just killing yourself because you got the stubgun.
Also, having lives prevents someone with an op loadout from dominating for too long. As of right now someone can camp in a corner with a 3.0x grenade launcher and kill anyone on the map for 4 minutes straight. With lives on, starfishs like that can get their cheap victory quickly, pat themselves on the back, and then go back to being stuck with the stubgun.
With one life, getting kills was meaningful. It was fun being able to clear the map with a stubgun, because that meant something. You already had systems in place to remove the major drawbacks of having one life, like the reveal system and the 2-lives-for-a-while thing. Getting killed wasn't even that bad, because it's still pretty fun to watch other people play. Rounds are only 4 minutes.
That's not to say that no lives isn't fun. Having lives just works better with the nature of the game. I'd make no-lives-mode a special round.
also update the warhammer weapons, i hate the old boltgun particles