Apologies if this thread has left the station, but the title caught my attention, and then this post pretty well summed up my initial thoughts.
@Toaster Lot's of people who play poker (some in this forum) seem to have the goal of stacking other players and generating an income stream from playing the game. Nothing wrong with that when that's your mindset and everyone is in agreement to play that way, or tolerate that type of play. That's what we see when we watch the WSOP and the cash games pros play on live streams and vlogs. But that may not be your group, so be cautious as you read suggestions from players who may like to play more serious games.
But I think you and your friends sound closer to my way of thinking which is that poker can also be a fun, recreational pastime among friends, with a money element that is used to keep score. With that in mind, I think you should seriously consider the suggestion to drop your stakes to nickel / dime. I get together with those more serious types once in a while, but most of my home games are with family and close friends, and recreation is the primary goal. We say, "Let's spend a few hours having fun, chatting, drinking, and playing poker." And at the end of the night, somebody might go home with an extra $50, and somebody else may have lost $50. With most everyone else in the + or - $20 camp.
My bigger games (bigger meaning close to a full table of 7-9 players) use a $20-$30 min-max buyin with rebuys and top-ups "up to" 50% of the biggest stack. Key being "up-to" That is always optional, and you can always rebuy for the minimum. Some players will prefer to have more behind with a goal of getting back their losses with a quick double up. Others like play short stacked to control and minimize losses. We have a lot of fun in our games. Some play loose and like to chase outs and push all-in, while others prefer to play tight. Both can have fun in a game like this, and not have to worry about making next week's car payment.
It's been over a year since you posted this, and hopefully later in the thread I'll find out what you decided to do to make your game work for you and your friends. An important point though is that you have to fit your game to your group. There's no one right way to host a night of poker. I will say, there are certainly some wrong ways though. If you see your game expanding and bringing in new players that might be more experienced, then I strongly suggest you drop the idea of allowing ratholing. (taking money off the table) As others stated, this is highly frowned upon. Players who have lost money typically want the opportunity to get that money back, which is much harder if you allow chips to be cashed in before a player leaves the game. If you're having issues with the big stacks bullying the small stacks, there are strategies to combat that style of play. You and your players may want to read up on that.