There has obviously been fraud and unfair advantage taken on musicians who were not intelligent enough to prevent it. These sorts of things do not happen solely to musicians. They are common in business relations.
I lose substantial amounts of money each year due to fraud and unfair advantage. My only solution is to increase gross revenues to compensate for the losses. Work harder for less money!
I think perhaps that's "less savvy" or less streetwise.
Otherwise I agree entirely.
I note that your margin matches pretty well my 1/5 or 1/6. Very slightly worse.