No one works for free and the fees are what is expected for a service like this. Not everyone wants to risk having a gun pointed to their head to give up their physical silver, so this is a decent substitute. You buy when the premium is low and you suffer no dilution. It's only dilution to those who buy way above NAV.
Didn't they do the last few offerings above the NAV? And besides, I couldn't care less about a percentage here or there when I think silver should be above $100 by now with all the cr&p going on at the banker/fed level. I bet whatever dilution you can spout off about PSLV is a lot less than the dilution in the dollar and or your typical company run by a bunch of sociopaths issuing themselves millions of stock options at shareholder expense. PSLV is tame compared to most investment vehicles.