There's a knockout that runs daily and tons of SNGs offered. The only problem is that few people are playing them.
The issue with KO tournaments is it helps promote donkey play (i.e., "I will take this risk because if I happen to win, I get a bounty"). That's how it is on most sites at least. Does the same happen here?
Well, MTTs with a high % of the prize pool allocated for bounties do have a lot looser of play, but a lot of that is supported by basic math. Also, why do you not want other people to play "like donkeys"? That's what makes the games good!
But to your question, my experience playing that tournament is that people are slightly loose but it's not anything drastic. Everyone is still pretty much horrible in other ways.
Donkeys get lucky too. There's no fun in someone who just goes all-in all the time -- especially when they wipe out an entire table because they got lucky on a hit. Best case scenario is they keep building a chip stack while everyone folds, giving them a strategic advantage.
If you think it's the best case scenario you are admitting it's the best tactic to use in this tourney: then just do it yourself