I have the same mindset as you and I agree, but I have almost never managed to convince someone else to go into contracting. They don’t want to risk that sweet stable income. :)
Also some of them buy into the entire thing with colleagues being their friends etc etc.
Some of them prioritize family in front of work and want their jobs to be as easy as possible so they can focus on their families instead.
But yes, to me being an employee is the worst form of employment. You usually don’t learn much after the initial year, and you get lazy and stop learning. Your skills are therefore not growing anymore. Getting a new job is harder, and you are likely to accept the first offer once you want to switch.