Personally, I wouldn't consider this to be too far. In my opinion, about one fault per 3-4 services is OK for "medium" setting. If they would occur more often, I'd worry for the condition of the trains I got to drive The difficulty is that it's very much up to personal taste. Perhaps some finer method to adjust the frequency would be helpful, instead of just low/medium/high.
personally, I am fine now... I got it on normal, and I kinda like how it is - you might get one or none at all... just like with speed restrictions and other stuff, it is called random for a reason... if it appears from time to time, that's fine by me, as a welcome occasional "seasoning"
Good point… Of course, in the case of engine shutdowns unless you investigate and remedy the cause (maybe low oil or coolant) it wouldn’t necessarily restart and you might even do more damage by trying to. So for the next phase DTG need to simulate this and have a mobile fitter meet you at the next main station to top up the fluid levels. And if it’s a major leak, then it’s banjaxed and needs a depot repair!