Yes, this is disturbing. However, for anyone who reads a minimum about academia in the media, there is absolutely nothing that we shouldn’t know already. Sure, it is very bad, it isn’t fair, the system is rigged and exploitive, etc.
The question is, what can the aspiring PhD do about it? Changing the system isn’t really a viable option when you are looking for work. The answer is to have a backup plan, another potential career track in case the likely happens, i.e. that you don’t get your dream job. In other words, there are many jobs that prefer people with PhDs, be they in administration, NGOs, government, consulting, etc. A student needs to know about them and plan for them as well, however fun it is to pursue pure research with passion.
Don’t get me wrong, I am all for young people pursuing their dreams. I think an education isn’t just about getting jobs, that it can be enriching on its own, the spark for a lifetime of learning. But we need to be practical. “Follow you bliss” can turn out to be very bad advice.