Sorry in advance for rant
I think the balance between the players pack and the payout is important. Both need to be worth while to interest me in playing a tournament. Plus I think it is a way to draw in the most people (both spectrum of players when it comes to "prizes").
From a time management standpoint (I don't really like the speed of tourneys myself, I shoot drastically worse slower), I would rather take my players pack, play up, and leave immediately after the second round knowing I did not cash, then wait around an hour for the equalivent of a two disc payout. Seeing rating changes is more important to me than winning plastic.
Although I did not play any tourney this year (injury/time), here is my current "philosophy" on tournaments.
C-tier (or lower) - I would not even bother unless a friend wanted to try his/her first/second/third tournament or someone locally was running it who I truly like and wanted to support (ie my local club or local TDs i like, not the ones I don't). For that kinda payouts, I would rather play casuals rounds and vacuum.
B-tier - I'd probably play if it's within an hour from my house and I had nothing else I had to do...and I liked the TD. I would not if I didn't.
A-tier (or better) - I would definitely consider traveling for. I probably would max out at 2 a year, unless more were within 3-4 hours of my house. Would probably consider all that were that close.
I think one of the 99 problems with tournaments is it needs to be an event. Not directed at anybody in particular, but if you do not make it an event and just create two (or more) rounds it's really just long casual play drawn out by others, with prizes. Leagues only take a couple hours, making someone new want to give up 10 hours for two rounds will take effort. I know most TDs put in a lot of work, however, from an outsiders perspective, half the time you really cannot tell a tournament is going on. The course just looks busy. That's not a tourney, that's just structure.
Please take with a grain of salt. I have years of marketing/events management experience so I know what makes people come and what deters them. I will get off my soapbox now.
So I guess my answers are:
From a PDGA member perspective (which I am)- I want balance between the two, something to fight for, and something no matter what I shoot.
From a non tourney player (which I was this year by default)- I would not come out to your (or anyone's) free tourney to play for a disc. It has nothing to do with my skill level. You can hear me saying at tourneys after hitting the first tree, "Well, someone has to come in last." My time is more valuable than one disc. That's why I stop looking after a few minutes for mine. I'd play casual before have someone dictate the pace of my day for next to nothing. Sorry.