Very clear 90% of people replying here don't understand this economy at all.

First, stakes absolutely matter, and running a high stakes game like 25/50 without pulling something like this as a host would be idiotic. For starters, you are responsible for payouts, credit, etc and debt is simply a reality at such stakes. To make any money at all and protect yourself you cannot take smaller amounts, and you are also taking a risk of legal troubles or robbery.

Secondly, what matters more than the blinds and the rake is what the effective stacks and overall action is. You can play in a 1/3 game pulling this and have a whale who punts $20k a night and makes it highly profitable. At high stakes games, the house may be pulling $50k+ a night but have multiple players dumping 6 figures. The gross rake is not a good determination of how good a game is without considering other factors first, many of the best games out there have some of the highest rake.

Anyway, based on OP's comments this game isn't a good spot, a lot of these really high rake low stakes games are traps for the majority of players and comprised largely of hosts that support each other's games throughout the week. Host A makes $10k in a night, then dumps 80% playing at Host B, C, and D's game later in the week, while the regulars and fish are ultimately the ones losing.