Right now essentially any putt inside of 25 feet could be eliminated from coverage, since they're pretty much automatic for the pros. I'm not sure how adding some tension to these putts and making them worth watching is going to make the game worse for spectating.
Either way goes to factors that make disc golf a poor spectator sport.
But if you make 20' putts uncertain, you make players lay up from 60', because they can't afford the miss that might cost 2 strokes.
What's more fun to watch? A 20' uncertain putt, or a 60' uncertain putt?
Of course, a lot of that depends on just how much smaller the target is. Where's the sweet spot? I don't know. One of my local courses (Earlewood) has old baskets that are noticeably narrower than modern baskets, but not so much that it discourages people from making runs from greater distances. If you could find the point where shorter putts are less certain, but not enough to discourage players from running longer putts, I think it would be perfect.
But the degree you'd have to shrink baskets to add a 1/2 stroke per hole---to get rid of those -36s---would greatly cut down on the exciting long putts that go in, or are even attempted.
*
On the other hand, if you correct the definition of par, or the application of par, to reflect what expert players actually expect to get, then with very little effort you've brought the winning scores closer to par, without tinkering with the baskets at all.
We can still shrink the baskets---to the sweet spot, if we agree upon it---but for reasons of making it a better game, to play or even watch, and not just to make the score look like golf.