If nobody accepted these crap conditions, CX would be forced to improve the contract.
In theory, yes. In practice, just never going to happen.
As I've tried explaining on this and other threads - it's a decent package when compared to others out there. That's the comparison new joiners will make, not with what it used to be (had they had the hours and joined on expat terms).
Simply put, for aspiring pilots out there with limited hours, facing the choice of going the regional/GA route (whilst paying for your own training) just makes no sense when someone like CX is going to do the whole thing for you and pay you more than you would earn at said regional.
Some will stay away because of what they've heard, or they have a longer-term picture and want to stay at home, but many more will come. For the training, the money, the SJS and, yes, even for the chance to "experience" HK.