Those are a good set of contacts. The pinball radius is very different from an offset in the contact. Take contact #4 for example.  A large pinball is required so that the solver finds the contact Near Open so that it pays attention to it from the beginning. Without that the contact might have a Far Open status and the dynamics will take the blocks through each other during the solution.  If a positive offset is used and the contact is Near Open, then the blocks will make contact at the offset distance and when they come to rest, the blocks will be separated by the offset distance.