We already get paid in equity. Our 401(k) plans tend to be invested in stocks. I work for a public company, and could move 100% of my 401(k) into my employer's stock if I wanted to. What mainly distinguishes my situation is that I get paid enough to have money to invest.

But for people who work for private companies, equity gets to be more tricky, for instance due to varying levels of seniority, "golden" shares, and so forth. From what I've read on HN, my impression is that the senior shareholders screw the junior shareholders. Also, it may be impossible to figure out the value of such a company, i.e., for anybody to know what they're really getting paid.