What your saying isn't clear to me though? You say it's more like PPS because of the variance, yet, you say it's better without giving the reason?
Sorry for not being more clear.
Straight PPS == the pool owner takes all of the variance risk
PPLNS == you take all of the variance
SMPPS == when the pool is lucky, btc is held back for unlucky times but the pool does not share in the burden if it is very unlucky, miners must dig themselves out of the hole
DGM == the variance is shared between the pool owner and minershttp://yourbtc.net
has also implemented poolserverj correctly so my stales are like .04% and they have a working implementation of merged mining which is extra profit.