Well, yeah. That's because if the recruiter tells you where the job is, you'll go directly to the client and keep the 30% of your salary that the recruiter gets to yourself.
I think it shifts much long term risk from businesses to the developer, and in addition provides little social and financial stability for the player with the least to start with, and their communities.
Of course, there advantages, not to disparage those, I have benefited from it, recruiters can be pretty damn good at what they do. I just think that the problems outweigh those.
(I was hired into finance by a recruiter. The recuriter took 50% of my income until I was hired as a full-time associate. I got a raise and the department probably saved a ton of money.)