We can talk about whether or not it is healthy from a Ts&Cs point of view to have such a bias towards cadets, and clearly the answer is that it's not good at all from that perspective
I honestly do not think that it is such a clear cut picture. The T&Cs at Lufthansa are among the best in europe, those at KLM or Air France are not bad either, and even Swiss or Air Berlin are not horrible. My company started hiring cadets through their own flight school (they still have to pay part of their training, used to be 60k, now its 75k €) around six years back. Since then our T&Cs have improved considerably and last year we negotiated a three year contract that increases pay by double digit percentages every year.
I think the only people defending 200 hour kids are people who used to be 200 hour kids.
True in my case i guess, i did my training at the lufthansa pilot school, not for lufthansa though. Just had around 1500 hours glider time before that which doesn't count over here for powered flight.