A couple of points here. It is actually currently fashionable in medicine to ask MCQs with very many (e.g. >12) options, called extended matching Qs. The idea is to make the Qs a bit like ones with open text answers (e.g. What class of drug would you prescribe for ....?) but without the hassle of handling spelling variations in the responses. Usually these sets of options would be common to a whole set of Qs. It is an unfortunate feature of Moodle that it only handles such sets of Qs with a common stem rather clumsily at present, as discussed at several questions in one page , without any good mechanism for linking the Qs to the stem. Possibly the 'matching' Qtype could be made more flexible to this end.
Bear in mind that one of the main functions of a quiz (which I prefer to call an 'exercise') should be to encourage learning, rather than to grade or rank students: assessment for learning. It seems an excellent idea to insist that students use their brain (even better, along with pencil & paper) to register that an answer they have already tried was marked wrong! Better still if they think about why, and why they were perhaps sure it was right!