Exactly. I don't think there is a sufficient pilot pool to continuously force the cost reset and bid to win game. However, It's going to be a blood shed for at least a little while, before the major airlines really get cranking on the hiring.
As for loyalty goes, you are spot on. I know for a fact, that Don Bornhorst (head of DCI for Delta whom runs the Delta Connection portfolio) has stated several times that he doesn't care anything about ASA (LXJT) employees, or their travel benefits on DAL equipment. He's ruthless, and wants the cheapest possible feed, period. Oh, and while he squeezes, he also wants us to provide outstanding service with the knife in our back.