Baron, if you have a look at the retention rates of cadets and those employed from GA or RAAF then you'll find the answer about 'loyalty'. I know you didn't bring up the RAAF issue. I know that I did. What I was doing was illustrating that the aims fo both perhaps are the same!
As for choosing the crew members? I wish I had that choice. There are a few that I'd put on that list- more non cadets than cadets too let me tell you. Personally, I'd take someone competent no matter what their back ground. I've also found that the background often doesn't matter when it comes to the level of support that you get. Perhaps it's me!
The extra costs for upgrades and endorsement training is also a myth. The rate is about the same for direct entry upgrades (I'll put my hand up as having struggled a little to start off with, I did one extra sim and a two day domestic trip extra. Many of my compatriots did not require anything additional).