How is that sad? I love the fact that I can quit my job and go take another job at any time. If the flip-side of that coin is that I can be fired at any time, then so be it.
What, you think having a family means you want to be stuck in the same boring job for the rest of your life? Or that you won't still want to seek higher pay down the road? What if you have another kid? Job flexibility could come in handy...
So? We should end at-will employment so a few people don't have to experience the occasional "stressful and demoralizing experience"? I'm not buying it. Nobody said life was all sunshine and rainbows...
Works well when it's easy to find a job, doesn't work well when you get fired for no reason and you were working in a profession where you don't just get a job the next week.
Also there are more possibilities to employment than American "any time for any reason" and European "at least a month either way". In Canada you have to have a justified cause to fire people or just give notice, and for quitting you customarily give 2 weeks notice (I'm not even sure if you're legally bound to).
Works well when it's easy to find a job, doesn't work well when you get fired for no reason and you were working in a profession where you don't just get a job the next week.
Isn't putting aside savings to account for possible interruptions in employment simply prudent management of one's personal finances?