My main issue against "pay to play" is that there is often no quality control with the acts that go onstage - as long as they sell tickets (or buy them).
I decided to give Least Wanted a booking since they haven't had a show in Dredd for so long. They were even willing to book a Sunday, a normally dead night. I'm just surprised they still have a "pay to play" concept in this day and age.
Let's just wait and see how the wind blows. My belief is that if the bands don't like this deal, no one's forcing them to join. If the audience doesn't like it, they won't watch. At least with our six-band rule, those that do come won't have to sit thru 30 bands playing two songs each.
I won't encourage it, but I wouldn't go as far as banning it.