Hear hear.
This race to the bottom has been going on for far too long, but I wonder if it will ever stop.
I'm not an expert on the matter, but the problem such as I see it is not the airlines themselves. There will always be one airline that goes further than the other airlines, within the regulations, or in "grey" areas of regulations within Europe. The other airlines that have unionized pilots, collective agreements, and a normal human benefits package will be the losing party.
The only way I see out of this lunacy, is for the EU to impose stricter regulations as to what airlines can do, how far they can go with contract labor, and how they can shop around Europe for the best place to have every piece of your company.
However, I assume the EU are mostly in the pocket of the airlines in question, and won't budge unless a string of accidents will swing the public opinion to make them change, like in the US.