Unfortunately I’m inclined to believe this is on purpose to filter out people with self-respect such as yourself.

It’s not just a cost-saving thing (though I’m sure that’s also a factor), it’s a way to make sure the only people who go through with such interviews are those who are very desperate. Because people who are desperate are more willing to subject themselves to poorer work conditions.

Companies will only stop doing this when it actually stops working, which is unlikely given the massive inequality in our world today.