Thank you guys for the replies!
I'm not sure where and how I want to sell my game but casual gamers would just be frustrated with the game as it is really hard to play and somehow unforgiving to the point as you don't have a lifebar and there are no checkpoints.
Dynamic branching will be used with shader model 3.0, which can be a performance problem if there are many branches and pixels close to each other, all use different ones, but in your case that should not be a problem and dynamic branching could be in some special cases an opportunity to improve your shaders performance.
Can you please take the time and try to explain this a little more? Is there a time when a shader with an "if" is better to be compiled with PS2.0 than with 3.0?
One of the shaders where I need to make if comparisons is a single layer non-overlapping model, almost screen filling.
