Yes i think so they must be put a low house edge so that more players are play again. If they house edge still there i think more player are not interested to go play again. They go there for faucet only.
Lowering the house will not work.
If they will do it, then why will gamblers still play on a dice site that is not popular? They will still choose those dice sites that been used to be since the beginning. Freebitco is only for faucet purposes.
If you check this thread, then you will come to know that some time back wetsuit wrote that their main profit is from this hi/low game. Means even with such a high house edge people playing this dice game on this site. So if they reduce house edge, it will help a lot to those gamblers playing on this site. But as you said this site is suitable only to claim faucet money and shouldn't play this game because wetsuit is responding to many of the questions people ask.