Did planes fall out of the sky from inexperienced pilots? No.
Blogsey,
The RAAF had a spike in accident rates in the early '90's - in a number of these, especially the 707 accident off East Sale, had 'an erosion of corporate knowledge' following heavy airline recruiting in the late 80's as a contributing factor.
True, invasion of the hordes, end of world etc is unlikely but it is a very serious problem and often the consequences take some time to be felt.
Money isn't everything, but it helps put up with a lot of the negative aspects and probably will tip the scales for many pilots (including myself) to stay when the LCC packages aren't so attractive...