Startups that hire unskilled labor are only pulling back the curtain on the actual job market. If anything you can expect to hear more about it as the tech startup world starts building things that require more staff than an engineering department.
I worked unskilled labor in NYC before and during college (and a short time after). I've seen attempts to scam jobseekers, I've been sexually harassed (I'm male) and I've worked for assholes but I have never seen a legitimate employer that was even remotely this bad.
Startups that hire unskilled labor are only pulling back the curtain on the actual job market. If anything you can expect to hear more about it as the tech startup world starts building things that require more staff than an engineering department.