[Fluorescence]

Those are valid questions, you are describing the problem. It is a tension. It applies to immigration and any number of other social issues. What was wrong was to frame the flooding the market with new software developers as an entirely noble intent. It's like saying the abuse of h1b visas has also been noble and not about labour costs / control over staff.

The problem is that it is a fundamentally unfair game which requires some people to lose. If you want a solution then it's to remove desperation from the labour market. Remove the implicit threat of destitution and ruin if you don't take the work that is offered to you at the minimum cost an employer can get away with. This is what takes people to ideas of basic income and basic services.