Those aren't really worth much anymore -- once you hit a bump in the road, employee options are the first things to be wiped out. If investors received a larger share as has been reported, it's in preferred shares, which probably wipes out the employee options.
Sacks was pretty good about handling that situation.
Still agree with your overall point though - it's going to be a long, long time before those shares are worth anything.
So founders, former employees, and earlier investors probably lost out...
2. When new shares are issued, usually preferred shareholders get shares for free to maintain their percentage in the company. Other existing shareholders do not, of course.
Also, define "current". What matters the most is its valuation at exit relative to its valuation in the final few funding rounds.