maybe i dont know so much about this, but i dont think the first solution would work.

with so many tables on party, the shortstack abusers will just double up then go to another table. that said the second solution seems to be a good idea.

also the key reason i think should be pointed out re: loss of revenue is that the company is losing respect in the eyes of one of its groups, which will result in less players than otherwise possible at the high stakes games, as players move to other sites.