The first rule of 3Jack Club is.....avoid double bogeys and worse at all costs.
Since you were in the 'Danger Zone' (typically shot from 175-225 yards), I believe first we need to understand the 'Watson Rule.' Tom Watson said that on long iron shots like that one, he would just focus on hitting it solid and aiming for the middle of the green.
I believe we want to play for our 'average swing' (by that golfer's standards). The issue I see with amateurs is that they usually play for their 'bad swing' (by their standards) anytime they see trouble or the hole gets tight. One of the major problems with playing for the 'bad swing' is that you may take a decent pass at it and still have a very difficult shot on the next shot.
I would have concentrated on the tee on what iron I believe gets me to the fattest part of the green with an 'average swing.' Of course, you stated the hole slopes away (which is a bad design when having a long iron into the green). So it's a bit difficult for me to gauge what would happen if you landed on the middle of the green. Also, I'd like to know what trouble there is in the back of the green, too.
So...tee shot IMO should be the club that will get you on the fattest part of the green. Even if it's a 50 foot putt, you probably won't do more than a 3-putt from there, which still beats a 6.
Also, I think you can learn from the tee shot that if you hit it poorly and short of the green, we want to be more left so we don't deal with the bunker and the narrow green. So I would probably favor aiming left a bit more as well. Still though, we want to play for the 'average swing', not the 'poor swing' (and the results from poor swings are unpredictable compared to the results from average swings).
On the 2nd shot, I would have been looking for the uphill putt. I'll take a 12 footer uphill over the 8 footer downhill more than most people will think and...I think I'll make it more often than the 8-foot downhiller. Anytime I short side myself or just have a difficult pitch/chip in general...I start seeking out a way to leave myself with an uphill putt. Studies have shown that golfers make far more of a % of their uphill putts than downhill putts. The downhill putts break more and the ball is more likely to 'wobble' because it's moving at a much slower speed.
So....first shot....look for fattest part of the green, favor the left side slighty. 2nd shot...look for the uphill putt and don't worry about the pin so much because you probably won't hit it close anway. If you can find an uphill putt or the pin...just find the part of the green you know you can find, 2-putt...take bogey and move on. Sounds like that hole is a toughy. If you're playing a tournament, the scoring average would likely be above par, so taking a 4 wouldn't be too bad. If you're just playing in general, a decent architect will likely follow up that tough hole with a birdie hole soon. So...take the 4 and move on.
Question: When should you 'Layup Chip'
Mostly when the odds of getting it within 5 feet are not in your favor. The PGA Tour pros make only 55% of their putts from 6-10 feet. They putt on much better greens that we do, so more putts are likely to sink. And that doesn't factor in that even pros make much less downhill putts than they do uphill putts. So a 7-foot downhill on the PGA Tour may be made 45% or less of the time.
I don't know your handicap, but for a 7 handicapper I cannot imagine them making a 7-foot downhill putt on non-Tour courses more than 45% of the time.
Look for the uphill putt and favor leaving it there.
Brian's 'Rule of 12' chipping system/technique is a good example. If you do the Rule of 12 and have an 8-iron into an uphill slope, you might want to use a 9-iron if you want to keep yourself with an uphill putt. When in doubt, look for the uphill putt.
Question How much should your par-three/approach club selection be influenced by the areas with the lowest amount of 'trouble' - i.e. even if 'going for it' from Danger Zone, do you go for a pin high yardage, or a safe spot near the pin?
Look short to long first. Particularly short. Most holes are designed so if it's a long approach shot, they'll put water up front so if the golfer hits it poorly, they go in the water.
The first thing I look at it what is short of me. If short is trouble OR a tough up and down...I then look for the fattest part of the green, and look for the yardage to the back edge of the green and play that yardage.
Danger Zone shots are tough because there's so much carry involved. You can hit one flush...regardless if you are a short hitter or a bomber' and a few gusts of wind can knock it short or to the right, etc. It doesn't matter if you're using a 7-iron from 210 yards or a 3-wood from 210 yards....that amount to carry is difficult to control distance and the line. The thing the bomber has in favor is that generally the shorter clubs are just easier to hit and they can stop the ball much better. But, even for a bomber a 210 yard approach shot is important because this is where they will likley take a bogey or worse.
Anyway, I look short because if there's water in particular....I want to avoid it at all costs and the best way to do that is to play to the back edge of the green, focus on hitting it solid and aiming...direction wise...for the fat part of the green.
If short is not an issue, then I look direction wise AND yardage wise to the fat part of the green.
That's is UNLESS the pin is up front and I'm confident I can get up and down if I'm short of the green.
There's a hole at a course I play that is a great example of this. The green goes at a 45* angle to the right from the tee (par-3).
The fattest part of the green, width wise and depth wise is the middle of the green.
If the pin is in back, I do not play to the pin distances wise. I play to the middle. The hole is generally open. But if I play to the back pin distance, but hit it directly over the middle of the green, I will miss the green and it will leave me with a short sided up and down.
If the pin is in front though, short of the green is wide open and usually not a hard up and down. So I will play the yardage to the front pin.
You can really improve your game if you can figure out where the easiest up and downs are when you miss the green. The easy part is figuring out where you don't want to go (i.e. water). The hard part is figuring out where the easiest up and downs are.
3JACK