When case assigned to org object the system creates notifications for all the org unit members leading to performance issues

When a case is assigned to an organizational object (say Org Unit) which has many members, the system creates notifications for all the org unit members leading to performance issues.

We need to identify a solution to handle notifications when the case owner is an organizational object. We discussed few approaches on how this could be handled in OOTB which could be considered during detailed analysis of this enhancement ticket.

+Approach 1+* - Introduce an application property that allows customers to define the maximum number of users that can receive a notification if a notification is going to get created for multiple users, and once that limit is hit no further notifications will be created. This does imply that the system will arbitrarily pick a sub-set of users to send the notification to; however, we felt that this was a more flexible approach than not creating any notifications at all if the maximum number of users is exceeded. Customers could in effect configure the system to not create any notifications in this scenario by setting the maximum number of users to 0.
+Approach 2+* - Enhance the Case Ownership area. Given the issue could potentially arise for any case ownership strategy other than direct user ownership, when ownership is assigned to anything other than a user we could have new section available that would allow the user to specify how notifications should be handled for that case. For example, this could be where they nominate one specific user or they could have other options on a drop down that might say "No notifications required for this case" or "Select subset of the owners" or if there's a lead user configured that might allow an option available for the user to select "Notify lead user".... (We can come up with other options also).
We might still need to have parameters that set upper limits, to safeguard for performance, just in case ownership is set using the API and therefore bypass this new element of the UI. However at least providing this gives control to the customer in terms of who gets notified.