As Zombie noted, the blind structure itself is fine. 100bb to start with an average blinds increase of 44% -- ranging from 20% (L17) to 100% (L2), with most of the early increases at 33-50% and 25-33% in the latter stages. The antes are a bit aggressive, but theoretically they force players to either play or die a slow death (and apparently it's not working for your group). In reality they usually just slow things down, which in your case just makes the slow deaths quicker (fewer hands get played).
I'd keep the structure, but dump the antes. Probably won't change the super-nit play style, but at least stacks won't seem to be as short in the later levels. If you don't notice a significant change after eliminating antes, then consider a more aggressive structure from the middle onward to force more players out earlier, giving the remaining players larger stacks and more room to play. However.....
People nit it up more because 7$ of the buy in goes towards a final table at the end of the year. You get points for how you finish,
These two factors ~may~ be part of the problem.
What is the buy-in? When the final table rake is excessive, it can place greater importance on lasting longer (to score points needed to make the finale) and less emphasis on winning individual events.
The awarded points structure can also dramatically affect this, and usually has more impact than the money involved.
When awarded points are linear, it tends to pay off long-term to just inch up the finishing ladder..... which encourages slow nitty play. When performance is truly rewarded with the points structure, play will typically step-up so that players have a chance to win or place high, rather than just 'beat the other guy' or outlast the shortest stack.
I'd like to see the points structure, as I suspect it is your single biggest problem. Sounds like everybody at the final table is getting points, and there probably isn't much of an increase as they move up in finishing position. Putting some serious points up for grabs for the top finishers (and giving everyone else hardly any) will definitely alter the super-nit approach, since it no longer rewards nitty play by scoring significant points.