I finally found this thread after hearing about this on the 2+2 Pokercast. My first reaction was that the competition (in terms of taking it seriously) is *worse* than the play chip games I've dabbled in on FTP. There, people will actually fold to check-raises even though it's just lolplaychips.
But as you said, your bots are really bad. And I can't tell who is a bot and who is a real player who had just become a regular. So when I see someone with 13BB min raise UTG with 63o and then call off his stack after he gets reraised and someone else 4-bet shoves, I don't know if it's your bot, or some really bad player that we are supposedly getting away from. I haven't run Pokerstove on that, but I'm guessing 63o has pretty crappy equity in that situation.
But I at least appreciate what you're trying to do. The problem is that this is basically a free roll, and people are treating it like they treat free rolls on cash sites. Plus, your structures that put a starting stack under 10BB in the 4th level invite all-in shoves anyway.
That being said, I've run my $0.25 up to $5.35.