You are exactly right in what you say here. I used to work with many companies large and small that held this same attitude. Thanks for reminding me. ;^) I have been self-employed for fifteen years and work small companies and large companies as a contractor - several of them are in the top 50 of the Fortune 500. Consistent among my customers is that they don't have this attitude. I am surprised that for the size of these companies, employees are treated as if it's a big family. I see it as a difference in the mission of the company and company philosophy. It's up to us to decide who we want to work with.
I went though a very similar situation as John fifteen years ago - Thank you for sharing your experience with us, John! But leaving the company was the best decision I ever made and what I learned from that horrible situation has help me become successful since.