This is a pretty interesting topic, by the way.
Cash games are most profitable for good players when the spread among teams' expected points is greatest. If everyone is expected to score around the same number of points, we're all losing money on average by paying the vigorish. But if my team is expected to score five points more than the median team and ten points more than the worst team, that's probably enough to give me a positive expectation even after accounting for the vigorish. So we need the teams' expectations to be spread out a bit.
The question is: what kind of pricing is likely to result in the first situation (where everyone is expected to score about the same amount), and what kind of pricing is likely to result in the second situation?
At one extreme, if all players are priced proportionally to their expected points (according to the best projections available), there will be no spread among teams.
At the other extreme, it is possible to come up with pricing that makes the best starting lineup so obvious that nearly everyone will choose it. With no vigorish, this becomes a profitable game if even one owner fails to submit the optimal lineup: the rest of the teams will split that owner's entry fee most of the time. But with the standard DraftKings vigorish, to expect a profit, you need at least 5.6% of the owners to fail to submit the optimal lineup.
In between those extremes, we have ordinary reality. Players will never be exactly priced in proportion to their expected points, and neither will there be only two sorts of lineups -- obviously awesome ones and obviously stupid ones -- for people to choose from. There will always be some spread, and there will always be people who make mistakes. It's possible that people will make fewer mistakes with "loose" pricing, but that each mistake will be more costly. How those factors balance out in the real world is an empirical question. This seems as good a week as any to start trying to collect some data on it.