I didn't mean to imply baseball hides money better than other sports. My point was about how easy it is to manipulate the numbers to make it appear as if things are different.
As for arb existence, I'm not sure what is best, but my point was that if players were smart, they'd push for a plan that greatly raises the pay for the majority of players and not the select few (not that both cannot occur). My guess would be that forcing small market-small spending teams to spend more would be a big step. Maybe more profit sharing by big clubs would be needed- maybe not.
Raising the minimum pay by $500K would not put anyone out of business. Maybe step it up by $100K every year for the length of the new CBA. Maybe give significant step raises to second year and 3rd year players, but if you make that too steep, teams may cut them over their pay raises. Becoming a FA earlier would help players get paid more, but I think the arb process works pretty well. Maybe jjust start it a year or two earlier.
5-10 players getting mega deals every winter might bring up players' average wages, but if the vast majority of players keep getting the same, I doubt they stand for that system much longer.