Earlier quoted context omitted.
Selling vulnerability on the black market is immoral and may be illegal. The goal of bug bounty programs was initially to signal "we won't sue white hat researchers who disclose their findings to us", when did it evolve into "pay me more than criminals would, or else"?
Let's set aside morality for a second. There is a reason low payouts are bad without even having to consider the black market: it pushes people to search for bugs in a competitor's app that pays more instead of in your app! If your app is paying out $2K and a competing app pays out $100K, why would anyone bother searching for bugs in your app? Every minute spent researching your app pay 1/50th of what you'd get searc…
It's not about viewing security researchers as sociopaths who will always sell to the highest bidder, the fact is there will always be criminals going for exploits and bug bounties can help not just by paying off someone that would have otherwise abused a bug but also by attracting an equally motivated team who would otherwise be entirely uninvolved to play defense.