In a perfect world with little competition, peaceful filters that only block you after a week of proxy primetime, equal payouts for all country traffic (That is china and Iran traffic earns you as much as US traffic) and NO FREE DOMAINS, you could get much more traffic per proxy and much more profit. But conditions being as they are .............
Submit new proxies -
In my observations, average and incompetent people make up the majority of any group, whether bloggers or proxy webmasters or whatever else (Or at least they seem to).
Hosting for me is about 10% of my earnings, aswell, and I could easily downsize but I choose not to because I'd prefer dedicated. I'v found yahoo to be pretty effective aswell; however, I don't even do any promotion on it. I'v found that users actually submit my proxies to yahoo answers, and it brings me traffic. Found this out by googling a few times, heh.