"According to the VP of Table Games, the Palms doesn't own a single 0 wheel. I asked him why he didn't install one. He mentioned the initial cost of the table/wheel, $12,000-$14,000 according to him, as one factor."

It wouldn't cost that much to convert an existing table. IMO, that'd be the only way they could expect any level of regular play with $5 minimum chip values.