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The this is Steve knows he can convert clicked traffic better than 0.02 per unique. And we, the affiliates know that is true. So he can offer that and be sure honest webmasters will be paid, even if he loses a couple of bucks on some accounts.
Why should more sponsors do this? Because I dont know every sponsor out there who converts as good or better than LS, and if they make me this kind of offer, I will try them and see what they can do with my traffic.
It's not that motivating to build sites and put links up when you're not sure how much you will get from it (if anything...).
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Go Fuck Yourself!
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