So far in my experience of playing 9man SNGs it seems that sitting out with a reasonable amount of chips is not too bad near the bubble.
Of the 4 times that my internet crashed, near the bubble I finished itm with 4 people left having a big/midstack (at best shared lead with someone else). In 2 cases I came 2nd. I did some calculations and found that third place equity was similar to my icm at the time of internet failure, but 2nd place was much higher equity than I'm expected to get.
There were also times when someone else sat out. One game we had 3 equalish stacks and a tiny stack, and one of the big stacks sat out. We all had about 13bbs each and the small stack had 2. I pushed in the small blind with 99 against the other big stack who had 15bbs and called with A7s (my push was correct, his call was terrible)- and of course I lost. This was especially interesting since a big stack sat out, and we had a small stack as well. The problem is I am so sure to be itm, that I think it is wrong for me to push 99 if the big blind spite calls with atc (stack sizes me 13, then 15, 15 and 2). He might have thought I was pushing atc, so maybe his call is correct on that assumption?
I think that sitting out makes people attack your blinds more, and they clash more as well. And at the low limits, people call shoves far to wide, so if you sit out, the other players "co-operate" with you and try to knock each other out. So as long as you are not in too much danger of blinding out immediately, could sitting out be +EV?????
Is there any interesting articles/videos about strategy when someone sits out? I play 6.5s btw, and would imagine higher up people play much better when this happens.