Underlying your comment is the assumption that every one wants the hedge fund (or other) job. One of the allures of academia is the prospect of doing fundamental research. You ignore that many people derive satisfaction from doing fundamental research that has the potential to be widely used across the research community (and possibly, for product development, e.g. industry labs, some government labs). It is simplistic to dismiss academia as a feudalistic system. There are merits, demerits, and other nuances.
Also, there are, figuratively speaking, thousands of academic fields, each with its own system and culture. For example, academic jobs are plentiful for PhD graduates in these areas (in my experience): information technology/information systems (as opposed to computer science), management, accounting, finance, organizational behavior, etc.
A summary dismissal of academia as 'feudal', especially when such an assessment underlies 'advice' is an unnecessary exaggeration.