I like your take and think it has a ring of truth to it. However, don't confuse your model with reality. Reality is full of nitty gritty details and variations. And some folks start businesses to get rich, and do, and some start them to gain more control over their lives, or greater fulfillment. It's not all a bunch of duped drones working for The Man, for free. And just because there are some suckers, and some people are not good enough, doesn't mean all are.
I'm not saying they're all duped drones, but most of them are working for The Man. And, of course, they can't unionize (not that that's been too helpful) because they're competing with each other for The Man's favors. They may take control of their lives, they may achieve fulfillment, but they don't hold real power. And like I wrote in another comment, any sustainable exploitation must be advantageous for the exploitee as well. I'm not saying the system's bad. Just have your eyes open.
