As a former AAA dev, this is spot on. At the end of the day, games are a business. Margins are not attractive and competition is fierce as the barrier to game development has lowered with Steam: both are downward pressures on wages.

After entering games with naive expectations of the wild west of the 90s, I would recommend other programmers not enter the AAA space, if compensation and job security are concerns. Indie game development looks like great fun, but don't expect any low-latency programming.