Earlier quoted context omitted.
Honestly, it is expensive, but not enough to offset the insane salaries, at least for devs. If you're going to feel sorry for someone, feel sorry for everyone else who lives here. Programmer salaries are not "insane". A half-decent programmer is worth $500,000 to the business and costs about $100,000. A good one is worth over $3 million, and only costs about $150,000. Programmers are actually incredibly fucking cheap…
If that were true, why wouldn't some startup pay the best programmers it could find $2,000,000 a year and put everyone else out of business?
The reason it has to be done with equity instead of salary is because there's a principal-agent problem with salary. People collect their salary regardless of whether their contributions actually are worth a few million. And so they have every incentive to sit on their butt - or at least, not take any risks and just do what got them the initial salary grant - in the meantime.