You're seeing a correction of the past two years where significant economic pressure brought an overall reduction in capacity across the industry Mike. Not necessarily a transfer of "Mainline" flying to "Contract" flying.
Mainline partners are slowly increasing capacity to match demand, across all sectors, which is starting at the contract lift providers initially.
So I don't think you really have an argument regarding contract "growth" since the growth - historically - is still no where near the highest levels of contract flying, just a correction of capacity from mainline partners to their contract providers.
Contract companies stopped hiring and furloughed in significant numbers due to the pull down of block hours from their mainline partners due to the economic pressures put on the industry. They're recalling - and potentially hiring - due to a relaxation of these pressures and forecasted capacity increases through 2011. You may have a valid question in regards to honest "growth" after 2011, but I think it's far too early to try to gauge that environment right now.
Hopefully that addresses your last paragraph. Very few of us are wanting anything both ways right now. A return to proper staffing is not connected with professionals wanting to improve their career expectations and prospects and how the elements of mainline and contract carrier relationships are managed. What you do see is a short term outlook as well as a long term outlook, not a single outlook for different periods of time.
I wont even address the "bad for business" comment, as Doug put it earlier - it's not our job to run our respective companies - it's to protect our professional worth and value and rebuilding the profession, not to decide what is good or bad for business - I'll leave that to the free market capitalists sitting in the boardrooms.