I think WSEX would be better off having a very small rake and using that money to offer bonuses and perhaps affiliates.

The problem at this point is, fish don't fully realize the effect of rake. They see Party has a $200 bonus...WSEX has no rake. "Duh", says the fish, "I'm going to play on Party Poker! Who cares about rake, it's hardly anything anyway. I'm going to get $200!"

I've got a good friend, smart, plays poker casually. I'd say he's weak-tight, but that's better than most at the home games. We've played 3/6 at a B&M with 10% rake. I told him the game is basically unbeatable at that rake level and he just shook his head and said it doesn't sound right and that it can't be that bad. I ran some numbers at him and while I think intellectually he gets it, at a gut level 10% of a pot doesn't seem like much to him.

Denial/delusion is a powerful force.

I think if WSEX had a flat 1% rake capped at $1 per hand, it's still be the lowest by leaps and bounds, but they'd have money with which to really try and bring in fish through promotions or affiliates.