A billiard ball should work very well in place of a standard trackball. Quality billiard balls are made from a phenolic resin which is denser than the cast polymer that trackballs are made out of. Just make sure you use a 2-1/4" billiard ball and not a 2-1/8". I'm no expert in this field, but I believe that there are two different sizes. I believe that cue balls and bumper pool balls are 2-1/8", but you should verify that.
For the bearings, light household oil works best for trackballs. 3-in-1 oil is what is typically used on trackballs, because (as you mentioned) heavy oil or grease only adds resistance. Shelf life of trackball bearing lubrication is about 1 year without use, meaning that you should lube the bearings once a year even if you don't use it. The oil will leak out of the bearings in the form of a light film and you may not even notice. Under heavy use, it is recommended trackball bearings be oiled every 3 months. A few drops on the dust shield next to the inner & outer race should be sufficient.