You're correct in the larger analysis of the situation regarding Chapter 13 reorganization. What's not commonly understood is that Chapter 13 has a big Chapter 7 component built in to it where secured creditors are paid back under a plan determined by the trustee, and most, if not all, unsecured debt is discharged (IE: simply disappears) just like a Chapter 7 bankruptcy.
Examples of secured debt under a Chapter 13, using the GM example, would be the government's bailout loan, or loans secured by real property that are owned by the company. Examples of unsecured debt under a Chapter 13 bankruptcy would be a supplier to GM of parts with which to build cars where the parts had already been delivered to GM, or unsecured lines of credit that are the equivalent of a signature loan (you wouldn't want to be American Express, for example, under a Chapter 13 filing). In the case of unsecured creditors 'getting the shaft' under a Chapter 13, it's true, but they do get to take a tax deduction on the discharged amount, so it's not a complete loss for the unsecured creditors.
If a business has assets that can be liquidated, and has a reasonable expectation of revenue, then a Chapter 13 filing is typically what a trustee would want to see filed, as it's best for the business, especially for a publicly traded firm. If a business has very few assets and very little reasonable expectation of revenue, then a Chapter 7 filing is what the trustee will want to see filed. Remember, the instant you file a bankruptcy petition, whether you're an individual person, private couple, or any of the flavors of business organization, you lose control of your affairs and they're transferred to the trustee of the court to administer. That means your life is no longer yours, and your finances and assets are owned by the trustee and not you, so slamming a debtor for anything that happens once a bankruptcy has been filed is not a fair attack, because they aren't making the decisions at all until the matter is resolved.
Alec is right in that it's simply the way that business works in much of the world, including America, and without such a mechanism then our country would not have survived for as long as it has and you'd find a very different way of life than what we enjoy. That all said, perhaps discussion of political matters by any of us might be best suited for the Off-Topic Forum in the future?