I'm thinking a "short" stack might have a sizable advantage in this game since it only has one decision - fold preflop or expect to be all in.
probably true to a degree, but honestly as loose as this game plays, the looseness is 95% on the flop. the perceived looseness preflop really only serves the purpose of making the game play properly according to stack rather than blind structure.
as many have said, each game finds its own equilibrium as to stakes. after an hour of play in the .25/.50 game at meet-ups, you may find one token sub-$200 stack. the preflop betting serves to make the game play more as a $1/2 (closer to $1/3 or $5/0 game late night). but even those "raised" stakes in SOHE very, very rarely lead to an all-in preflop.
imo you'd have a hard time getting stacks in preflop more than once every few hours. if you bought for $60 (i think that's the min at berg's game, though i can only recall one person having ever bought for that amount), you could probably get it in pre within the first 2 hours of play, but remember also that it's a rotation game, so it would take a while to get to SOHE, since the rotation is 2-3-4-5-6 (NL, pineapple, PLO, Big O, SOHE).
plus, if you're able to play the short stack effectively (i.e., have the skill and are able to exert sufficient self-control while playing with this group), you likely have a much, much, much, much (i could go on...) higher edge buying in for the max and just playing well against other deep stacks.
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My view is that all cards should be sorted into HE and Omaha hands (with card protectors and plenty of table separation) PRIOR to any PF betting by any player. But more often than not, this rule is bent slightly and folks allow separating hands until it is your turn to act PF. My personal view is that this is still an edge (and maybe even an angle, depending on intent), since you have information about how others are betting prior to your getting "locked in" to your hands on your action.
i agree with this. the rule as i have always understood it is that you have to have your hand split before you act preflop. i don't know that there is enough organization within the game to actually enforce the requirement that everyone's hand be split before anyone acts, though i'd be in favor if it were reasonable to do so. certainly without a doubt a hand cannot be rearranged after the money goes in preflop.