If it were true that the NPPL always lost money, then your argument would stand up.
It's true. NPPL loses money on every event. Maybe not on event revenue minus event expenses, but see below.
Also, for either league, if they dropped the 2 poorest events, they would expect to make more money.
Not true. PSP makes money on every event.
Here's the problem with the condense-events plan with regards to NPPL:
NPPL has HUGE payroll and other overhead expenses. Those are annual expenses that get split up over the events they run. You cut out events, now you've got even fewer events to spread those payroll costs over, and condensing events won't get them any more teams (see above).
Cutting events alone won't do it. They are horribly not efficient at running tournaments. They need to cut overhead. And if they cut overhead, they might still be able to run 5 events.
Here's another issue. PSP has always presented itself as the place to come play paintball, while NPPL has always had a significant 'come party' component. So PSP takes their 'off' events and has them at Rock Hill and Greensburg, and the players don't really care - same refs, green grass fields, air, they're golden. If NPPL starts doing the same, they've lost the very thing NPPL's customers have been conditioned to pay for - the atmosphere.