Adamastor and Baileys; you talk about wallpapreing over the cracks and, by inference, apply blame to the controllers - I think that's a bit unfair. I'd give you the analogy of the nursing profession dealing with a broken health system in every state. They feel morally obliged to prop up the system because they are concerned about people's health - the parallel with ATC is that the concern is peoples' safety and not piking out and dumping extra pressure and extra demands on their mates.
There may be a few who do it for the money. I'd bet my house that the vast majority do it because they still have pride in their profession. I'd also like to believe that there's a determined, and bloody-minded streak, that's not going to give the pricks an inch. From the way that their management appears to have played this, they are praying for disruptive industrial action - it's the only thing that will save their necks and "prove" that they are dealing with recalcitrants. As I've said before, my impression of their union is that they are not that stupid. I'd go as far as to say that "management" will have a totally crappy XMAS and new year if Santa doesn't deliver the hoped for industrial action.
The truth will eventually out.