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I've played in games like the one you are talking about (large blinds compared to the buy-in and increases every orbit), and it often does boil down to "who gets the best cards".
The key is really to just turtle up and push your premium hands. Fish only come in a few flavors, so it is often easy to figure them out quickly. There's always going to be at least one rock, a couple of idiots who think poker is all about bluffing with nothing, and at least one maniac who wants to see every flop and push anything with bottom pair or better (heck, even overcard or better). Many fish do not like to raise pre-flop unless they have a monster hand or they are on a stone-cold bluff. See the previous sentence for getting a read on who is doing what. Also, most fish have no clue about other players' betting tendencies, so you honestly can just fold everything and then mega-push your monster hand and still get paid off. Finally, most fish have no clue about slow-playing a monster hand. If the board is showing a flush draw on the turn and then all of the sudden, someone starts firing at the pot, put them on the flush and don't pay them off.
I realize that with escalating blinds and a short stack that you are going to have to hit something within the first couple of orbits to maintain your stack, but that is really the only risk in this kind of game. The key is to maintaining your discipline and really only going after pots that you know you can win. Chances are that you will always get at least one fish to pay off your big hand, and that is the other key. The nice thing about fish is that they are often very easy to read. The crappy thing about fish is that they have no clue about EV or betting for value and will sometimes outdraw you on hands that they have no business being in. They will overvalue any pair on the flop, any pocket pair, and they will rarely muck a pocket ace pre-flop, no matter how hard you push. Those are some of the axioms that guide my home-game play against the fish. Oh, and never "tap the aquarium", but that goes without saying.
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