I never made as low as $25 even in the late 80s when I started playing. Back then, $25 would get me a full tank of gas, dinner, a couple packs of cigarettes, and money left over for extra-curricular activities. Sadly, it seems were are still making about $25 a night considering what $100 can buy now, which is about a full tank of gas, a couple packs of cigarettes, and dinner.
Personally, I don't mind the four hour gig. If anything, it's a great rehearsal. The issue for me is start and end times. If you have an established night-time crowd, and it's the weekend, 9-1/10-2 makes perfect sense. But, if you're not in a spot that features night life, or a late-night crowd, or it's a weekday, 9-1 doesn't make sense. In those cases 8-12 or 7-11 makes more sense. I wish more bars would do this because I think it would work well for older, working crowds that tend to go home earlier, or places in a more residential area. It would allow musicians to retain the dinner crowd and not be relied upon to provide the entire draw. And, the bar can close earlier if they choose to.