When our group started playing a lot of tournaments, I duplicated the WSOP when it was 12/7/2/3/1 and later 8/8/2/3/1, in part because it's the WSOP and easy to follow. I've played in games where there were only 4 of the lowest denoms. More recently I've been using 16/16. I've recently concluded that's probably too many. It seems like there is just as much if not more change making, which seems counter-intuitive. Just based on observation, I think more change might be made because players have so many of the lower chips they over use them, and of course someone winds up with most of them by winning a couple of hands and then playing higher value chips. I tend to bet using bigger chips, so I frequently am the "bank" to get change from in the smaller denoms.
What I've recently gone to is 12/12. What I don't like about that is my set was designed for up to 40, optimally for 30, and with 12-20 players, that is a lot of chips not being used. Thus I either set aside a large, unused reserve, or I rotate after tournaments (which is what I do). I use 4x25 boxes of starting chips where a box has the chips for 2 players. I had 10, thus the lower values chips were all in use. Now I have 15 boxes with 5 in reserve every time. My boxes are numbered, so whatever month it is, I start with the box number of that month and use the next 10. As I have 2 sets of tournament chips I use, most of my chips will be played with 3-4 times a year. Part of me feels like that's a waste, but simplicity of game management counts too.
Like BG, I think 10 is about the optimal number of lower denoms, but that makes for odd chip stacks. I think 8 is workable, but 12 is better. Outside of that range, it's either not enough or too many. Yes, some players like having a mountain of chips. Like Zombie, I'd prefer to accommodate them and I generally have the chips to do it. But I think it slows the game down a bit. Zombie is right that color ups are pretty quick, even with large numbers. I tend to stack my chips in 10s. Even with 25s I don't find that hard -- 2 stacks is 500, 4 is 1000. Colors ups just take, with a table of 10, 2-3 minutes, and if you color up 2 at once, 2-4 minutes. If I'm out of the hand before color ups, I start that process while the last hand is in progress. I don't interfere with the hand in progress. Sometimes the player on either side of me is in the hand, and I can't really do anyone other than me until it's over. As we color up, we give them the highest value chips, and encourage them giving a chip or two of the next chip not being colored up to get higher value chips on the table.
What would discourage me the most from more than 12 per player for the players you are planning for is that if you color up the lowest denom, and certainly by the second lowest, half of your chips are gone. Thus you are buying a lot of chips that will see limited use.
Every game is going to have some change making. How much is too much can be hard to determine. I think most of us have our own (probably unidentifiable) standard and when it exceeds that, it's too much. Two players can sit in the same exact game and one thinks it's too much, another isn't bothered by it at all.
What I've learned trying to duplicate the WSOP (or other tournaments at casinos): Zombie hit the nail on the head! They are NOT trying to provide a good experience to you! They are inviting you to invest in your dream. They accommodate that dream by them making money. It makes no sense for the WSOP to buy more lower chips than are necessary. Their structure is suited to their needs, not what makes the best tournament. Most who play in it, or any casino tournament for that matter, don't really about the tournament's structure. I have 2 casinos about an hour away. I have players who much prefer my structure to theirs. Mine is meant to make for a good experience for players. I don't have professional dealers, real tables, or a lot of other things casinos do have. However, I can make the poker playing a better experience for players pretty easily.
Conclusion: Use those tournaments as a guide, but not a how to. If you are running a for profit business, duplicate what they do because they are profitable (or they would no longer be in business!). Otherwise, make it a better experience for players precisely because that can be your focus. For example, if you want the WSOP 30K structure, I wouldn't generally have 2/3 of the chip value in the highest chip. More than half the value in the highest chip is not that good, but I will say that 10K each in lower value chips should be workable if the highest starting chip is 5,000.
