Totally agree, and I wouldn't have it any other way. I suppose I'm a bit of a strange case on HN, in that I'm coming to programming from being a film composer, i.e. I've pretty much always been freelance, and so working as a "real" employee is infinitely weird to me even at the best of times. I worked at a large corporation one time, and while I loved the work and my co-workers, the subtle office politics, the whole idea of a "culture," the routine day in and day out...it just did
not vibe with me. I'm not totally against going back to being a W2 employee, but it would take an awful lot to convince me.
Like others in this thread, the reality that work is primarily a simple transaction of time for money, coupled with my experience being a "real" employee, has ingrained in me the understanding that, if you want to protect yourself as a worker, being at "arms length" as you put it is the way. At least for me.
I am a company of one (literally and figuratively). Unfortunately that's the logical endpoint of companies not feeling any loyalty towards their employees. So be it, I embrace it, because what else is there to do?