I agree with your take. It's definitely a problem with the current game format. I have thought through some different alternatives, but not a fan of any of them up to this point.
What if you scored like wordle but based on undos? 1 undo used, 2 undos used... Up to 5 undos used. This incentivizes the user to try and not undo if possible.
I think the eliminated score method is kind of redundant with the wordled scoring, just make the player guess the 1 word left and be wordled?
Really cool and fun idea, we had a great time playing with it and probably will add it to our daily rotation.
But you're smart to be generous with the Undos while introducing the game, because it helps users get familiar with it
... as if it isn't hard enough already :-D