Ken - that's sad.
But man, bet HEAVILY against a regular at that course. Good lord is that one artificially low handicap.
How so? He's paying a full stroke for every wild shot. On most courses, you might pay two strokes here and there where there is OB or a place you can lose your ball, but most of the time you can find and play those wild shots and they'll cost you much less than a stroke. Sometimes the shots from the wrong fairway turn out to be pretty easy if you can correctly guess your distance.
My home course is way overtreed, and they aren't "limbed up" like the tour courses, so its a crapshoot what opportunity you get. Sometimes there's a play at the green, sometimes the "vicinity of the green" is the best you can hope for, sometimes you just try to advance it 50-100 yards and try to make par the hard way. But unless I try a shot and fail to execute it and leave myself in a similiar position on my next shot, its never a full stroke penalty like a lateral hazard.
If the treelines on my home course were marked with red stakes and the option of playing from amongst the trees was removed, without a doubt my handicap would go up several strokes. It'd probably induce me to play an iron off the tee on some holes I don't now, especially par 5s. Right now if I drive it in the trees on a par 5 I can waste half a shot getting out and still have a short approach to put it on in regulation and get a look at birdie (converted on that twice on par 5s in yesterday's round) With a lateral hazard I'm hitting from the rough from 200+ on three of the four par 5s, so its likely no longer worth the risk of hitting driver.
Yeah, if a course has dense trees and brush, rather than at least trying to maintain grass under the canopy and mowing down the volunteer trees and weeds before they can get big enough to eat balls, or tall ball eating grass, the red stakes are saving you some strokes. But I'll take a guy who plays at that course, whether it uses red stakes or not, against any other random golfer in a handicap match on a tight penal course like the one he plays on. Whether a guy is scratch or a 20 handicap, if it was established at a GCA "dream course" with lots of width where everyone can play one ball the entire round, you really have no idea what the hell he's going to do if you put him on a crazy tight penal course. The scratch might shoot a 90, the 20 handicap could run out of balls.