Yeah, with Hollywood's bookkeeping, you basically get jacked in terms of getting a percentage cut unless you have clout. If you're breaking into Hollywood, take whatever upfront money they throw at you, because that's probably all you'll see unless you're Spielberg's nephew (even then.) But that's really nothing new, and nor is it unique to Hollywood.
The "stealing scripts" thing though is more complicated than the article lets on (and even the article writer admits it's more "stealing ideas.") While the stuff the article says has happened, I don't think it's always that clear cut. Studios have a lot of projects in various stages of development, and the chances of making a film that can kindasorta be similar to an idea someone pitched but went nowhere is actually kind of common. In fact, studios often have you sign a release when you give them a script (assuming you got through the hoops to get one to them) that says, "We may have something that is similar to what you're giving to us. This release absolves us from any lawsuits if we make a movie that resembles yours in the slightest."
And stealing ideas/scripts from young, unknown writers is almost unheard of. If a studio finds a writer has a great idea/script, they just buy it. They have plenty of money to pay the first writer for the script and then have it rewritten to what they want.