While I don't mind see the balloons, let's face it. People do take them to far. This would be alright if they lasted only a few minutes. But they don't, which is where the problem arises. To many polluting the game environment when people take them to far.
Now, one can combat this by turning max physical objects down. But, this also removes environmental pieces as well.
My suggestion here, is a needle gun, peashooter, or something along these lines, with which we can pop said balloons. I would even take like a tank pet that does this.
Could even make this a weapon, like the ones you use in Winter Wonderland. Usable against every day balloons, and as a part of balloon shooting contest for the the Lohlunat, It would mean making a new event for that, but this is just a side thought that came up as I typed this out.
This also creates more fun for the players, because really, who doesn't like popping balloons?