I agree with both posts.
Used properly, I pretty rarely gut hook a bass on an eel with a 7/0 live bait hook (Gami's are too rich for my blood though)
I use circles on eels at outflows (RIJ knows where and has been there when I've used them) where some slack might exist in the line, and have no problem hooking fish into the mid 30's on eels there with 8/0 circles), like RIJ said, you're just waiting too long.
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