And that's the point where I invite you to suggest how that should be done
AnyDVD already does a number of retries before it gives up.
It's quite impossible to predict, exactly how many retries it takes to get through your particular damaged disc.
So "switching on this 'mode'" as you put it can only mean retrying endlessly.
Considering that among all defective discs, the vast majority will not recover after
any amount of retries, and if you leave the process running for the night, you may wake up the next morning, and wonder whether replacing the bad disc for free wouldn't have been the better alternative to replacing your now hoplessly worn out drive (not so much for free - note that retries put a lot more mechanical stress onto your drive than sequential reading)
So if anything, I would agree to having an "abort, retry, ignore"-box instead - which still requires you to interact, but after all it shouldn't be required for many more than 1 out of 200 discs (unless, that is, you already
have a hoplessly worn out drive).