It sounds obviously wrong by the way you phrase it, but it's not so black and white. As a freelancer myself of the past 5 years, I prefer the independent life, being able to negotiate things as I'd like, having more varied work and having more freedom to work when and where I like. Perhaps I could make more and have better benefits as a regular employee, but that's not what I want. Maybe you don't understand and so this is "obviously wrong" to you, but not everything can be bucketed into "wrong" and "right" for everyone. This may help some but it will definitely screw over others.