Its actually pretty family friendly. Having to do a lot of hours, but picking and choosing on what and when, being able to work from home almost on a whim, with only the occasional production outage (and that's only relevant if you don't have a production team).
I had a discussion about it with my family physician once (they, admittedly get screwed too, but that's the point: everyone thinks everyone else has it better). In the same areas an engineer can ask for 150k+ (can easily go over with bonuses and stuff), the family physician is making 220k~. The later actually ends up working more (much more) hours, at the office, much more on-call, and has very little flexibility, plus they get exposed to all the patients who come for a cold or a flu (flu shot isn't 100%!).
Hour for hour the engineer will have it a lot better. Lawyers on average make a little more (500k is only for the very successful private practices or stars at lawyer firms... engineers with successful startups or superstars can command that much too, bad example and its very uncommon), but again, work a lot more hours doing stuff that a lot more people think is boring (very few people will do lawyer work for free...a lot of software engineers will write open source stuff as a hobby...because its fun).
Companies don't try to "make this strategy work". They have little choice. Any easily solved problem has already been solved, probably with an open source solution out. If you want to provide any kind of value, you need to solve unsolved problems, and that's hard. You can train people to some extent, but if people don't keep up at least somewhat on their own, they'll always be in training, and then won't get anything done. The salaries are already in the top 3%~ range and keep pushing up.
When so many people make so much money, you go back to square 1: Tried buying a house in San Francisco lately? That multi-million dollar cashout from Facebook's IPO doesn't get you as far as you'd like... Go ahead, triple the salary of thousands of engineers. Everything that you want will just triple in price with it.