Good post CC.
My 2 pennies worth:
I have a problem with pilots telling other fellow pilots not to accept lower terms and conditions, paying for type ratings etc. I don't believe enough pilots will stand by their principles. And who is to judge what is "stepping over their grandmother" and what is not? I know many pilots who have struggled for years and are now in their mid/late 30's, have never had the money to buy a house or been settled enough to get married, have no kids for the same reasons etc. Who would begrudge them a major airline job?
Unfortunately, basic economics dictates that as long as there are so many more wannabes than jobs then the employers will dictate the terms. IMHO this can only be balanced by strong union representation and/or more choice of employers so that at least experienced pilots can move around thereby persuading airlines to up what they offer to pilots to keep them. Sadly, both these conditions are woefully lacking in Australia!
Finally, what does annoy me is that the media (avaition and otherwise) continue to preach the airlines message that there is a shortage of pilots and that as a pilot you will be very well rewarded. You would expect the airlines and flying schools to heavily promote this message but you would hope that the media could also highlight the difficulties and hardships that pilots go thru if they are ever to reach the heights of the big airlines.
I appreciate your point that many pilots don't aspire to working for the big airlines (good on 'em), but for those that do, I would advise that you talk to as many pilots as possible before you start down that road. I love flying but I wish I'd known what the price was going to be.