Honestly, the optical is the best way to go if you are going to use a real plunger... I don't see how it is overkill, I see how it is more of a necessity if you want to have a real plunger. I have seen how people pull my plunger and let it go just to do so. Without anything mechanical to worry about I couldn't care less. Anything mechanical is going to wear out and hitting a button hard in the same spot over and over will eventually break it. The optical just makes more sense in this case...
Sorry, this assertion just isn't grounded in fact. A normal arcade pushbutton was designed for more abuse than the spring on a pinball plunger will dish out. It's not hard to find buttons over 20 years old that have not only survived, but show no signs of even weakening. The pin plunger also has a nice soft, compressible tip to help absorb some of the shock.
I'm not saying that the optical solution isn't a good one, just that it's not necessary to get to the same destination. But if going this route, I would suggest some sort of stop to avoid the "ain't no ball in the chute" spring oscillation. This can be as simple a block of wood at the end of the travel, with or without something additional to cushion the impact than the already cushioned tip on the plunger.
The optimal setup, just shy of having a real machine, would be what I was originally going to do using a track with a real pinball inside it.
In all actuality, none of this is optimal for a pinball plunger as the function is purely "cosmetic". For all of this extra effort, one should realize a gameplay benefit, but this type of setup offers no more control than the original simple switch. So that brings me to a question; what method is supported in pinball games for plunger position other than a simple digital switch? Anything? I mean, a very interesting circuit can still be devised even if this is the only method available, but there would be less "realism".
RandyT