That's a good suggestion. I'd like to reduce the minimum fee, but need another method of transferring to do so.

I'm looking for ways to do this though. I am considering raising the minimum payout so such a large percentage of the payout goes to fees.
Not sure what method you're currently using, but many faucets batch payments from multiple users together and the single fee for the transaction compared to the total of all the outputs is negligible; and some faucets don't even include a fee. I'd bet most users would rather wait a day to receive their earnings if that would avoid a fee. You could also offer an option to send immediately if they are willing to pay the fee. Sites like mtgox and peerbet do that.