the thing is, the startup job market selects for people who don't place a high value on job security, and who are willing to work (temporarily, at least) for below market rates. If you want something safe and high paying, startups generally don't compete with the big boys.
Now, obviously, the first hire gets a worse deal than a founder wrt compensation... but I think everyone is aware of that going in to the deal, and that this is part of why it's so hard to hire experienced people for those (non-founder, early employee) roles.
The big factor people don't realize is employee number one has worse job security than the founders. If you they have huge equity and no salary, and you draw a salary, guess who goes when the bank account is short? If you all make subsistence only, you are losing due to lack of equity and opportunity cost. And still, if there is only enough for 2 of 3 to subsist, the employee goes. If the company tanks, you all go.
I think people realize this. Nobody who cares about job security works for a startup unless they have no other options.
Working for a startup when you want job security would be like getting an art degree if you want money.
My experience has been that if you want to hire people for significantly below market rates, you need to accept that you will be getting inexperienced people who probably can't get good stable corporate jobs. They are getting paid in experience rather than equity. It's just not really something that people who are good and experienced do very often, because as you said, it's not a very good deal compared to the other options available to people who are good and experienced.
(note, I said "hiring" - the rules are rather different if you make them a founder, or give them founder-level equity.)
Or excellent, qualified employees looking for a lot more security. For me to go that route again, I'd be looking for a lot of vacation time (6-8 weeks). Even then the salary would have to be pretty solid as well.
Now, obviously, the first hire gets a worse deal than a founder wrt compensation... but I think everyone is aware of that going in to the deal, and that this is part of why it's so hard to hire experienced people for those (non-founder, early employee) roles.