This right here. It's frustrating when you learn that someone hired a couple months ago ("the hottest job market" tm) with 2 yoe makes marginally less than you at 10+ yoe, as an example. A higher performing Sr can expect maybe high single digit bumps yearly, but a job hopping Jr can double digit bump and make it to almost the same level in a couple years. While less important and more ego the same thing is happening to titles. It's just hard to get out of the headspace of feeling underpaid when you see that, especially when you are the one holding their hand and helping them gain experience. Totally get it's all "in your head" and we are all very fortunate or that I should just job hop along with them, but overall just hard to escape those thought patterns.
This is known as wage compression. It is occurring (typical in hot job markets) and has many of the problems you noted. Good indicator of a distorted labor market.