TBH, although not a 'fan' of raked games, if it's really just a collection for the group good I'm fine with it.
Now on to the question...
I play in a regular game, where our host plays. Guys are thoughtful, and most bring something extra for the host/group. Our host appears happy to keep having us over.
If the host raked up to a certain point, and put that money towards food/drink, I'm fine.
Why offer rakeback? One of the things I don't like about our current game, is the fact that there are some players who come late (legit work/family schedule) and one who leaves early (announced days prior). Would $20 get them to rush to arrive early, or stay late? Would it entice another player to buy-in again? I do like a full table (8 for our octagon), I just don't think that makes a difference for our group.
Open bar? The guys that drink, seem to bring an occasional bottle to replace what they've been drinking, or are going to drink. I'd rather not pay rake for others to drink, but they'd probably not want to pay for what I'm going to eat
I think some of the details matter. Ultimately, how much is raked, and what it gets spent on. I think a non-playing raking host is a running a business. At least there is a chance that a playing raking host is just trying to cover costs and keep a full game.
However, I have to say, it does not sound like a home game anymore.