> you're still going to have to job hop to get a respectable pay bump

This doesn't exist in a vacuum. I do tasks now for future interviews.

> Might as well work less and spend time polishing your resume/side projects to make yourself as employable as possible.

I don't know what jobs you're applying to, but unless your side project is successful, nobody cares. What they do care about is what you did at your last employer.

> This is 100% the fault of poor incentives on the part of employers.

The people who have your mindset are the people perpetually stuck at poor employers.