Jolly,
I understand what you are saying, but you have missed the point entirely. You say it is the bosses fault for using the free guy, not the guy who wants to be paid. Assuming management has all the money and needs a job done, and pilots need the money and can do the job, it's very simple:
If no one will do it for free, money has to change hands. If someone will, management, owners, etc. will profit and every pilot that needed work will still need work. The problem is jerk #1 decides to do it for free, so no money changes hands, management profits and a precendent is set.
Everyone has heard of the trickle down theory of economics, I think it works backwards in aviation. If someone will pay for a low level job, or work for free in the hope of moving to something better that's one less opportunity for everyone. Maybe someone will CFI for free in the hopes of getting on with a regional airline. He builds his flight time quickly, but everyones heard about it and they have done it too. Now the airline has three times the qualified applicants and can pay as little as they want, someone will take the seat. One guy wanted to get ahead, so he moved the bar down for everyone, and it works its way up the ladder.
The whole point is, if in an effort to get ahead one person will take a shortcut, or undercut another pilot then he/she is hurting pilots, not the companies that employ them. It's a domino effect that works its way up the chain, and unless pilots are united in that they provide a service and should be compensated, they can be played against one another, which isn't good for any pilot.