It is! It’s been very prevalent the last few years. Teams can earn the right to be cheapskates if they’re also smart—i.e. the Brewers—it’s also shortening careers for players in their 30s. We should probably readdress how we do service time and arbitration in the league too!
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IMO, not only is the current system bad for players, it's also bad for teams in the long run.
Sure, you get to pay (relative) peanuts to stars at age 25/26, but the trade-off is paying them tens of millions when they're 39-40 years old and no longer producing like a star.