I left in '05 and not completely sure what the five mm's left are doing. Based on everything I've heard, ans would be "not much" As to making your own market, this has been the case for some time (via ante) but the bottom line is ther's no edge left, excepting a few highly illiquid pos's. This leaves no choice but to take shots which was never really the point.
Re Paul Fred, for the entire time I was down there one of his guys was always in my crowd or at least nearby and I never heard the 30MM tax bill. Anything's possible.