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That’s quite a bit different don’t you think?

And stocks don’t always “go back up”. I would have hated for my RSUs to be worthless as my stock dropped 40% from its highs before they vested. At least I was able to sell them and diversify.

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Quite different from your previous point (i.e. that they are worthless)? Don't think so. They are a good addition to the salary plus bonus. Now these old companies switched to RSUs.

Worthless meaning. If only 1 in 10 companies ever see a “successful” exit and if even then, my equity may end up being essentially nothing after the investors and founders get theirs and it’s illiquid, why should I value equity at anything more than $0 when comparing compensation?

I am not sure you have read what I said. Already public companies were giving away stock options as far as 15-20 years ago. 100% of them had successful exit.

Options have higher volatility. This is not a mystery and doesn't mean EV is 0.

You can lose money in options, which means the EV can be negative. E.g. you leave the company and are forced to exercise or abandon the options. If you exercise, the company can stay private until you die or liquidate at less than what you paid.

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