If you think your personal experience is indicative of the music industry as a whole, you're welcome to that belief.
You are the one who stated that practically everybody does this, and when I say that I have never seen this on my own behalf you come off like a know-it-all. Well lucky me who have not encountered "practically everybody".
My experience is that the labels gamble the release cost against a percentage of rights and royalties, not lending the artist the basic cost for reimbursement later.
I'll defend mussar's perspective in sharing the knowledge that comes with understanding.
He's not a know it all, other wise his attitude might be a little different (plus you have the consider the body language context that's taken out during text)
Mussar is also studying music(and probably the business of it to some degree; either on his own in depth and at the very least in his classes), so what was given was a time and monetary investment on his part, for free.
Besides, what you're saying is true, as you may not have experienced it, but what mussar is saying is also also true (in the sense of the majority of people practicing/being in the music business).
Just trying to pass on the info, nothing persnickety about that.