Not just the game business but ANY business.
And if what you say is true- that there are plenty of folks who can make these games and if TEAM X doesn't do it the way the publisher wants, then they can go to 20 other places to get it done- then while that DOES SUCK MUCH for TEAM X THAT. IS. BUSINESS.
I would suggest- as I do in my blog- that TEAM X gets so good that they can write their own ticket. But until they do, to use your words, because there are plenty of coding monkeys desperate to get their foot in the door, they will have to take a shitty deal or go out of business. THAT. IS. BUSINESS.
The best case is to take shitty deal #1 and knock it out of the fucking park (and in the definition of knocking it out of the park you must include 'dealing with the politics of working with a publisher in such a way that the publisher becomes an ally to the production of the game) and once you hit a home run, make deal #2 less shitty until- eventually- you and your team are in a position to call the shots that matter to you.
I am sorry you don't like it. I don't like it either

. But THAT. IS. BUSINESS.