This past year I was in the same areas (RI) as you more than I like to be (am a Cape man/ sand sissy). Down there I use my old 10 ft St. Croix Ben Doerr. ( I think it is rated 1-3, but have thrown more) with a Shimano Stradic 8000 loaded with 300 yds of 30 lb Fireline. Gots enough backbone to turn most fish quickly and lets me fish from bombers and needles (rarely) to my mainstay, ch#^^^^^& eels. Fish the breachways with eels frequently and have had no problem with this set up. I like to have lots of line for the breachways. Many nights where the guys that only have around 200 yds of line aren't gettin the fish cause they are out further than they can drift. I also prefer to have plenty cause if you only have 200 yds or so of line, one break off or birds nest, and you're done for he night.
My feeling about the bigger reels is to cater to people like my father. Big fish, they think they need a big reel. Plus in the days before braid, in order for someone to get 300 yds of mono on a reel, they needed to be big. Best suited for chunkin (cause you don't wanna hold that sucker all night) or for BIG fish like tuna.
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