They are not dumb decisions. An indie artist HAS to sign with labels if they want to make it in the industry. That's the way it's been and we've accepted for decades that that's the way it will be.
Mistreating workers is not okay. Workers joining the status quo to make a living is not dumb. Calling them "dumb" online is deplorable, however.
Also, "if you're abused it's your own fault for being dumb" is usually a take you want to be pretty careful with.
They do have a choice: they can get a better paying job if they don't like the amount they can earn from music. Society should not be responsible for funding someone's passion when there isn't demand.
And yes, the expectation that you can earn a good living just by being a recording artist is foolish. The vast majority of musicians throughout history have been unable to do so.
Get a better paying job is very easy in this business. The lowest of the low would be better paying.