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I personely don't see anything wrong with those type tourneys. Large mouth tourney are held weekly in southern mass all the time. Some are well organized and respected.
As far as 75% payback, thats a turn off. I could see if you just enjoy being involved and small % is going to charties or a good cause.
As far as integrety, poop can realy get out of hand when your talkin salt water. I fished a tog tourney that got ugly when a couple of guys with lobster trap co. on their shirts showed up with a 11#, 14# and 15# togs. They took 1st 2nd and 3rd (all $'s).
I think with such a small pot your better off keeping the same regulars you fish with and keep it freindly
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