You make some very interesting arguments, and I'd like to believe them, but your explanation of the forces that drive people's salaries seems to only apply in cases where the employees are hired by, and report directly to, the proprietor of the business. Within corporate heirarchies, your model breaks down due to the maxim of, "no one who is subordinate to me may make a higher salary than me".
Managers use (abuse?) their authority within organizations to override the market forces that would otherwise determine the fair value of their service to the company, and thus impose the cost of their labor by fiat. Though it would seem that higher-level executives could step in to ensure that mid-level managers don't receive excessive compensation, that doesn't happen, because the salaries of those in top positions are supported by the same mandate. The system is self-supporting from the top to the very bottom, because the salaries of even the lowest level supervisors are determined this way. Only employees at the very bottom rung have their compensation determined by the market, and if that value is greater than that of their supervisor, the supervisor can easily insist on a raise regardless of his own merit.
The CEO's of top companies receive their level of compensation much more due to the mass of subordinates beneath them than due to the specialization of their skill set or the degree of value that they are able to inject into any business process. MBA's are a dime a dozen, and managers with general business experience are interchangeable. eBay, for instance, could have been just as successful with almost any executive other than Meg Whitman, and they were well along the path to success before she arrived.
Furthermore, this compensation mandate means that executives are able to gain all the benefits of business ownership without assuming its risks. They stand only to gain from success of the business and not suffer from its losses, except insofar as they could be fired in the event of catastrophic failure or gross incompetence. Lower-level employees, OTOH, can be fired on a whim.
Corporate heirarchies do not have a system that allows subordinates to swap places with their superiors based on merit. When an executive underperforms, the only recourse is termination. And, when your boss gets fired, there's a good chance that you'll feel the heat too. Hence the expression, "shit rolls downhill".
Again, I'd like to believe that there's a fair balance between risk/responsibility, creation of value and monetary compensation, but as anyone who has had an incompetent boss or project manager knows, that's usually not the case.