(From personal experience) there's a large proportion of people living in the big Swiss cities as 'ex-pats', working for (mostly large) employers who support/sponsor their immigration and ongoing employment. (Such people are well-paid and equally-treated, and certainly not "an underclass of indentured servants".)
If one stays employed in the long term, citizenship is not needed, and IME only a small proportion of ex-pats attempt to achieve it - either because their career and life plans are likely to eventually lead them to move elsewhere, or because there's no incentive in their personal case, or disinterest, or because of the perceived difficulties.
You're right that parts of the system for achieving citizenship may sometimes be problematic, and the Swiss have somewhat of a reputation for racism, especially in the less metropolitan areas. (Of course, you could also say the same for many countries.). There have been anecdotes of people repeatedly failing to achieve citizenship through exactly the issue you originally raised.
That said, the overall approach to citizenship taken by the Swiss is mostly praiseworthy, as some of the more impressive aspects of Switzerland (e.g. its direct democracy, and the engagement of citizens in politics and the democratic process) are embedded within the shared culture of its citizens, and the citizenship process takes a decent shot at preserving this culture - requiring, for example, proof of significant language skills and knowledge of current affairs and politics.
Reminds me of a friend that married a German. In order to become himself a German citizen he had to pass an integration exam with questions about history, law and culture. He passed the exam, his German partner tried the same set of questions and failed it.
If one stays employed in the long term, citizenship is not needed, and IME only a small proportion of ex-pats attempt to achieve it - either because their career and life plans are likely to eventually lead them to move elsewhere, or because there's no incentive in their personal case, or disinterest, or because of the perceived difficulties.
You're right that parts of the system for achieving citizenship may sometimes be problematic, and the Swiss have somewhat of a reputation for racism, especially in the less metropolitan areas. (Of course, you could also say the same for many countries.). There have been anecdotes of people repeatedly failing to achieve citizenship through exactly the issue you originally raised.
That said, the overall approach to citizenship taken by the Swiss is mostly praiseworthy, as some of the more impressive aspects of Switzerland (e.g. its direct democracy, and the engagement of citizens in politics and the democratic process) are embedded within the shared culture of its citizens, and the citizenship process takes a decent shot at preserving this culture - requiring, for example, proof of significant language skills and knowledge of current affairs and politics.