Well, just to put an end to OUR involvement, we cancelled.
It turned out to be the right decision. I have just hooked up with a band/promoter that is a SXSW veteran (from Denver) and after explaining the situation to her,
she said that I made the right call. Also, she is good friends with the people in charge of the particular event that we are cancelling, and told me not to worry about next year.
What we're going to do, now having an "in" with her, is schedule multiple dates around that week, so that next year we will be able to get more bang for our buck.
This was the original intention, but the festival was lagging way behind, and only confirmed a spot for us
1 month prior to the festival. So, if anyone knows anything about booking, it was next to impossible to schedule anything around it.
So next year, we'll not only have help scheduling more showcases, but more of a guarantee to work with to schedule other shows around - with the possibility paydays around that week to augment the overall cost.
So there it is. Thanks to everyone for your insights.