The simplest water ballast system I have seen was on a small GRP lugger with a lute stern (named a Hastings Lugger, I think.) It consisted of a "under floor" tank and 3/4" hole through the hull so it was open to the sea. A breather with a simple tap was fitted to the top of the tank.
Launch the boat and only a little water enters the tank. Open the breather tap and it fills completely. It didn't seem to matter if the tap was closed or open while sailing. On recovery, the water simply drained away as the boat was winched onto the trailer - if the tap was left open, that is.
This gave you the options of sailing without ballast, or filling the tank while sailing if things got too exciting. Obviously, once full, the tank stays full until the boat is hauled out. I don't know how well such a system would work on a larger boat with multiple ballast tanks.
I saw the lugger reviewed (quite favourably) in a copy of "The Boatman" or an early copy of "Watercraft" magazine years ago but have not been able to track it down on the Net.
Peter, do I take it that you are set up to use the electric pump to fill the tanks as well as empty them? I think for safety's sake I'd like the tanks to fill without any electric power being needed. Either gravity or a hand pump would do for me.
I do, however like the idea of varying the amount of ballast while sailing. As you suggest, it probably is at least as good as reefing and a lot less effort! For a single hander it's got to be safer to flick a switch to increase your ballast than to muck around tying in reefing points. No need to heave to or take your eye off the traffic, either.