Never played in one myself but heard others map out the course, hole by hole, which tee box they will play from, then determine which clubs they would use most often with stock yardages. After that determine where they might have to take a little off or jump on to be content with the selection.
It definitely sounds like a lot of work, especially if a few drinks and laughs are on the agenda. Then your approach sounds about right.
Good times!!

We used to do that as part of our annual guys trip. 3 holes with only 3 clubs and 3 beers. I always picked my 19 degree hybrid for tee shots and putting, and my 6 iron and pitching wedge. The 3 beers were always Coors Light in case you're wondering.

I have done many of these in the past. Being a longer hitter, I always based mine on the length of the par 3's. Most of the ones I have played in have been 9 holes. My first selection is an iron to reach and hit the 3's which usually is an 8-iron. From there I play a gap wedge (52-degrees) and a 4-iron to get off the tee and lay-up on the 5's.
I never pick a putter because I can putt pretty well with the leading edge of a wedge.