Merch cut is a big reality, but only if bands let it be. like someone said you just stand firm in your contracts with bigger clubs or play smaller clubs who have promoters with the same mindset as Glenn.
we did our last two summer tours and made sure we had no merch cuts. you just make it happen. if the club wants the tour bad enough they will drop that money to have the bands play. plus there is nothing more insulting as a touring band to have a promoter/club get a cut of your merch money that they didn't do anything to contribute to in the first place besides having a club, that YOUR fans come to see YOUR band perform at.
again, that is just my take on it.