I think Nathan is quite clear at where his unease lies. He (and I) feel that an affiliate manager should NOT be competing in any way with the affiliates. I doubt that I will be signing up for XY7.com after reading this thread.
I have invested a total of $60 into my campaigns this month, of which I still have $30 in my AdWords because I bid to low for my keywords. lol. There is no competition. Not sure how else I can say that.