Exactly. And it's getting exponentially worse.
The OP probably exaggerated some claims, and he clearly has a personal bias, but I think the same applies to a lot of the happy working meteorologists who are still encouraging people into the field. The truth is somewhere in between. Unfortunately, given the extreme negativity of the OP and the cautious wording from even the most gung-ho optimists, that middle ground is not too pretty.
Here's something every prospective met student needs to understand: hard work and good grades do not guarantee you a whole lot these days. The only thing that's a guaranteed pass to success is knowing and being cozy with the right people. In many cases, that trumps everything else.
Also, I think it's worth noting that this discussion seems very forecasting-centric. I went into school thinking forecasting was my calling, but now I'm working with numerical modeling as a grad student, and I've become more open to a career in research or model development. Even research and academia are very competitive in this field, since -- as others have noted -- the number of M.S. graduates is exploding now (vicious cycle: more kids can't get jobs after graduation, so they go to grad school as a last resort, deflating the value of an M.S.). But at least employment in research and modeling should continue to grow, whereas manual forecasting seems less certain, especially in the long-term. So if you're open to using numerical modeling or research as an outlet for your passion rather than just forecasting, the outlook is at least marginally better -- but it will, of course, require several more years in school.