Guv, the higher insurance rates and the rules about less-experienced pilots flying together only apply to the first 50 hours after final line check in any operation I've worked for. It also applies to any pilot joining, not low-houred as such.
As for the "sniper" versus the "shotgun" approach, it is simply not practicable for people to get themselves type rated for any company wo whom they wish to apply. If it's going to cost £15k to get any type rating - A320/B757/MD80/whatever, then not many people are going to bother to become pilots. There will then be a massive shortage and airlines will be offering other incentives, such as dropping their requirements. We will then be straight back to the "boom and bust" which does not assist either pilots or airlines. What next? Do we demand that all pilots have 1500 hours before they fly for anyone? Do they pay for that experience in a 737? There's a novel idea. Let's make the pilots pay to fly the aircraft, and let the passengers fly for only £1...
In this particular case, it is irrelevant what SouthWest do. This is not the practice in this country, or anywhere outside the USA that I am aware of. You want to employ people? To get the right ones is going to cost you money. Employers will have to get used to it, or, in your words, "grow up". It's not exactly difficult to skim through CVs quickly, and the ones that don't fit the bill hit the circular filing cabinet.
The arrogance and disdain this shows for potential staff is brathtaking. It does nothing for employer/employee relations. It merely advertises the fact that they care nothing for anyone. At the moment, with many pilots out of work, they can get away with it. When the shortage of flying jobs comes to an end, people will remember. And people will exact their toll for past treatment. Is this a good state of affairs for the industry? Very far from it. I don't know how you feel, but I believe in treating people as human beings, and having some respect and human empathy for them. It appears that RyanAir don't.
I suspect that Stelios is probably rubbing his hands with glee. On present going, nobody will apply to RyanAir, with or without a type rating if there's an alternative. There are plenty of 737 operators out there, and just as (un)likely to be recruiting as FR. easyJet will get all the applications, and RyanAir none. I forecast this will be a short-term (failed) experiment.