[Kovner]

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Getting screwed pisses people off. High volume players usually make a lot from poker. I wouldn't be surprised if many of them, like me, decided to leave party for Stars even if it's a little -EV.

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Party doesn't care about high volume players, they care about recreational players. I don't think it would bother them much if the high volume players went elsewhere.

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Costs them money. It doesn't make business sense. It doesn't take that much effort or even intelligence to do enough to keep players that would rather play at your site playing there. The ring games at party are much better then anywhere else. If they had a VIP program like stars or allowed rakeback, I'd play there, but they'd rather not make that few thousand dollars a month in rake I guess.

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You're ignoring one key element of High Volume, profitable players: They take money out of the poker economy. If it was up to PP, no one would ever cash out and all the money that is deposited would eventually be raked.
So there's a tradeoff there between catering to HV players and casual players. Until you've seen PP's accounting statements and resulting analysis, you cannot make conclusive statements about the profitability of their decisions.