the point is that these companies have done a lot of things stupidly. They may have overpaid their CEOs and other executives. They definitely agreed to some stupid things with their union labor.
Companies that make too many stupid decisions for too long are supposed to fail. That's a good thing. Ch 11 is the right way to handle the big 3, because it gives the courts a lot of leeway in figuring out how to restructure the companies debts, assets, existing obligations, etc.
http://www.youtube.com/watch?v=xKEXi3ZgUYs&feature=related
This senator corker guy from TN is awesome. He owns these guys during the bailout hearings.
There are a lot of good people at GM, even amongst union members. Those people are locked up in a company that is run badly. Changing out the top 1% or the bottom 20% won't fix the company. Bankruptcy (or something even more aggressive) will go a long way towards unlocking the good talent at GM and putting it to good use.