Doesn't surprise me that they were able to get the rake BACK. Daniel has a lot of influence with the WSOP. Not that it's a bad decision on WSOP's part, for the reasons you mentioned.
But yeah, Daniel 100% should have pushed for more live. And he shouldn't have agreed to the charts. I know he wants to keep underdog status, but he could have still claimed underdog if they played more live and didn't have charts online. After all, HUNL is Doug's game, right?
I totally agree with your "home field advantage" theory. This even comes into play in live cardrooms, where the person more familiar with the venue and the other players has an edge over the outside visiting the place.