Squirrel
You say that "It makes no sense to replace a Captain with two years experience with an FO who is next in line just because he is next in line."
That FO may have waited over 10 years for his turn in line to come, and may have many years experience as a Captain before joining BA.
The p&p rules are there to be followed. I accept that maybe personally you may not have chosen to join BA, but now you are in I don't see why you should jump the queue. The cost of your extra pay is not going to worry a management who can blow millions on a variety of whims.
Incidentally, the rules do say that directions to a particular seat or fleet can only occur after all valid bids have been satisfied.