I see no issue here. Business feels threatened and neutralizes threat.
There's nothing wrong with Unions, but there is something wrong with government-backed unions.
Let people collectivize if they'd like. Collective bargaining is fine, and you aren't living in a free country if you can't collectively bargain -- but collective bargaining shouldn't mean you automatically get government as an ally.
The battle between Union and Company should be between Union and Company.
I don't remember specific numbers (this was over a year ago) but I imagine it would change depending on the startup. I remember thinking the offers were fair.
I was making $100k and was able to find a small apartment in SF AND save about $2k a month (granted, I've finished paying my student loans). Not needing a car, and the ability to walk / scooter / public transport everywhere for relatively cheap, is a huge money saver! My half of the rent each month, as of today in SF, is $1300 ($2600 for the whole apartment in SoMa), but you need to take into account the money I'm not spending maintaining a car (which can be costly in the city, especially w/ parking).
As for health insurance, you'll more than likely find a job that offers that. I had great health insurance, the company had some neat perks like a gym membership, free lunch and dinner at the offices, and permission to work from home pretty frequently.
I think if you are anticipating $100k a year in SF, you'll do fine!
I interviewed for a company once that had different kinds of offers, ranging from low-salary/high-equity, to high-salary/low-equity. I thought that was an interesting idea :D They had 5 options total, and the middle option wasn't awful. I'd like to see more of this in the valley.
I'd consider it a hack. It was improvised in a short amount of time, and with limited resources. Sam shouldn't have gotten the deal, but he did! I'd say he beat the system. Which system? The Universe.