I agree that just substituting the bye for the dropped team in the schedule is the fairest, but I don't have a problem with the host team not having a bye. They have the most time and expense invested in the event and, in many cases, will have the most fans there since they don't have to travel. Their fans will be working tables and concessions, so I'd see not having a bye as a reward for the effort put into holding the event. If it is a last minute cancellation the host can't be held at fault for not filling it. Most schedules are full at this time of year.