I tested the rose cracker thing in Training mode. I set the 1UP to drop after the first 10 enemies destroyed, killed five with the shot, then five with the rose cracker. Only took me five more with the shot to get the 1UP, not 10, which shows the rose cracker doesn't reduce the count. Also, YOS.K uses the rose cracker all over the place (on enemies, and to milk destructible bullets) and still gets a 1UP to drop in the end of Stage 3 or in Stage 4 in his replays, which wouldn't happen if the rose cracker kept reducing the 1UP drop count toward zero. Dying definitely reduces the 1UP count, but I'm not sure by how much. Maybe 500?
Speaking of YOS.K, he has a new replay up - 9.3mil up to the the end of the first 1/3rd of Stage 6. He drops his medal chain on the snakes in Stage 4 (quite tragically), which really hurt his score. He also flubbed a lot of Stage 6, but he makes so much of it look so manageable. From watching his replays, I get the feeling of someone relearning the game after not playing it for about 4 years. I doubt he kept playing it much after he got his WR in 2006. The arcade probably removed the PCB soon after. Considering he jumped from 3.7mil to 9.3mil in about a week, I expect a 13mil~16mil clear from him in the near future. He just needs to keep everything together in one run.
IIRC his end of stage scores in the 9.3mil run were:
St1: 1.1mil
St2: 4+mil
St3: 6.2mil
St4: 7.Xmil
St5: 8.7mil
In comparison, here were his end of stage scores for his 20+mil WR run on the PCB version (2006, with the infinite lives trick used):
Stage 2: 3.7mil
Stage 3: 6 mil
Stage 4: 9 mil
Stage 5: 10.8 mil
Stage 6: 17 mil
I should add that so far YOS.K only plays Ver 1.00 on the port, never 1.01.