Reading through this thread has really given me (a new TO) a broader perspective on how controversial a topic money can be in our community. As someone who is really uncomfortable with the whole "making a profit" concept, here's what I think. A TO who uses extra venue fees to reinvest into equipment for the tournament in the future, be it capture cards, CRTs, more consoles, tables, whathaveyou, should be totally fine. The TO is running the tournament, and it's his/her/their responsibility to make that tournament experience as good as they possibly can for their players and their community. Anybody snooty with me over a venue fee to pay for more equipment can either pay up, or not play. That much should go without saying.
However, the thought of some TOs at larger local events, and the like keeping a few dollars is not terribly sinful. I wouldn't do it because my player pool is too small for it atm, but for all the work a TO puts in, a few dollars to send his/her/their co-host out to grab lunch while running bracket shouldn't be considered a problem. TOs trying to jack up venue fees to make money, or looking at smash TOing as a way to make money is not good. I disagree that Smash TOs should never be entitled to any compensation, but I also agree that Smash TOs shouldn't be hosing their players for their own gain. If a host were to net a few dollars for 8 hours of actual TOing, not to mention the countless hours promoting, editing captured video, uploading said video, etc, I don't think it would be amiss. I take less shifts at work so I can host, and I know that I won't make anywhere near what I would make at work, which is totally fine. But if whatever spare venue fee we would theoretically have helps me break even from running it (covering the upfront costs like equipment, printing costs for fliers, food since I can't leave the bracket, etc) I think it's okay.
And TOs at larger tournaments (over 100 entrants or so, and definitely with any that run more than 1 day) need to be compensated. Not hugely, but that is an immense amount of work. My first was only 40 entrants, and that was a lot of work. I couldn't imagine the logistics and effort that go into anything multi-day. I think as Smash grows in popularity, the thought of TOs making a few dollars will probably change. It might be from higher costs from players, or it might be from sponsorships/ad revenue etc. Of course I'm talking about larger events in this case, not smaller events like mine atm.