New Difficulty Slider for Items (and more)

I think, on top of the difficulty slider already in the game, there should be another difficulty slider: item difficulty. This slider would have five settings, and each would change what happens to the player's items on death.

Peaceful

Peaceful item difficulty is equivalent to playing with the KeepInventory gamerule on. You keep all of your items on respawn.

Easy

Easy item difficulty is similar to Peaceful, but every tool in your inventory is immediately reduced to the lowest durability it can have before breaking. Everything else is as normal.

Normal

In normal item difficulty, your items are kept in a storage grave at your death location. You have to go back to retrieve them, but they're not splayed out.

Hard (Default)

Hard item difficulty works normally; they're splayed out on the ground at your death location, vulnerable to fates like falling into lava and being equipped by mobs.

Hardcore

In hardcore item difficulty, every item acts as if it has Curse of Vanishing. There is no way to get items back on death.

Minecraft has always been about playing in the way you want, and I believe this would open up opportunities for many new styles of play. I would personally enjoy playing on a Normal difficulty world with Hardcore item difficulty. It would even open up the possibility of many new kinds of totems, though that's beyond this post's scope.