We won this game in a raffle and only got it out a couple of times because we didn't like the elimination. It also seemed like ducking was mostly pointless with so many 'clicks' floating around. I tried this variant with a fresh crowd and it went over well.
Differences: 1) No health. Bandage loot cards go into your loot pile and if you get shot with a bang you may (should) discard the loot card to ignore it (but only one).
2) Ducking players still fire and still get one loot. We played that those standing get first pick in the usual order, then those that ducked, then those standing divide the rest of the loot. Picking order was a little wonky, but everyone caught on quickly. It doesn't matter how many clicks or bangs were aimed at the ducking players; the chickens get one loot each.
3) If you chose not to duck, and get shot (with a bang) lay the character down and put the bang card on the standie. Those players get no loot this round. After loot is divided, they stand back up an participate normally in the next round.
After two games playing like this it seemed more strategic and less brutal.