Also, Coachella will not spend money on the lineup? I beg to differ. First off, in comparison with 2012, there are 30+ extra acts on the lineup in 2013. The middle-tiered acts look to be - at worst - on par with any previous year. The dance lineup looks like it may have cost less than last year, but the level of music quality increased with this lineup. Then there are the reports of GV offering The Smiths and The Rolling Stones -- two acts that would have cost millions.
Your theory only works in the world where Coachella doesn't have a chance of selling out of general admission both weekends and, sorry, that world does not exist. It will sell out two weekends for the foreseeable future and Goldenvoice is fully aware of that.