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I think you should be able to choose between gold and elixir to upgrade walls from the start there's a surplus of Elixir because all defense need gold to upgrade and walls the only thing you need Elixir for his troop upgrades and gold mine upgrades and the actual training of troops so they would be more General loot in the game which would get people playing more
Supercell did a special for a week or so in which all walls could be upgraded with elixer or gold. The results they found were that it DESTROYS farming. No one had any loot to steal because everyone could focus on their walls easier. With that being said, it doesn't seem like a good idea for them to implement this feature permanently to lower lvl walls.
Well seeing as how they themselves said that they have taken farming out of the game I don't see why that would be a problem now
It doesn't kill farming, I still found plenty of loot when they implemented it. And they didn't take farming out they just don't call it farming. You can't leave your th outside to get a free shield but you can still farm resources. If they were to implement it again I would say they would only bring it out for Lv 8 walls no lower