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The nickel bidder could go from the middle or top of the heap right to the bottom because all the lower levels will now be shoved up into one.
I think a minimum monthly fee is a "good" business model. But, merging the bottom 5 bid levels into one is going to cause a lot of people to jump ship.
I would gladly pay a minimum of $50 or $100 a month. But, merging the bidders below me or forcing me up is not going to set well.
-s-
I probably will not reload the account for 5cent bids. Or, if I do, it will be for 3 or 4 word ultra-targeted phrases.
In one large site, my "no-bid" pages are competing with at least two bidders at the 1cent level on about 5000 phrases. It'll be interesting to see what they do when their grandfathered bids run out.