That's always struck me as a very idealistic way of looking at dilution.
Another way to look at it, is that it's partly locking in the value of those shares at the time of dilution, effectively reducing the variance of the future value of the existing shares.
As a thought experiment:
If you're holding a lottery ticket that you bought, and someone comes along, says they're going to buy 1,000 lottery tickets, but promises to share any winnings with you pro-rata. You don't really have a choice to say no.
You'd probably be really annoyed, if your ticket is a winning ticket, you split the jackpot and don't even get a life-changing amount of money back for it. If any of theirs wins, you likewise get a modest amount, but you weren't bothered about losing £1.
It's an expectation neutral thought experiment, but reducing variance isn't always wanted!
Another way to look at it, is that it's partly locking in the value of those shares at the time of dilution, effectively reducing the variance of the future value of the existing shares.
As a thought experiment:
If you're holding a lottery ticket that you bought, and someone comes along, says they're going to buy 1,000 lottery tickets, but promises to share any winnings with you pro-rata. You don't really have a choice to say no.
You'd probably be really annoyed, if your ticket is a winning ticket, you split the jackpot and don't even get a life-changing amount of money back for it. If any of theirs wins, you likewise get a modest amount, but you weren't bothered about losing £1.
It's an expectation neutral thought experiment, but reducing variance isn't always wanted!