"It's simply a fact that people become incredibly irrational when it comes to compensation, and the minute you lay it out in the open, you open up a huge surface area for conflict."

I have had the opposite experience. It can result in conflict if salaries are by default kept secretive, and then someone finds out they're being paid much less than someone else. People start feeling undervalued or unappreciated. If salary ranges and structure are out in the open for everyone during the application process, there's nothing to get into a conflict over. Applicants know how the salary structure works and what they'll be making, so it avoid conflicts _early_ because those who might not be happy with the salary information can simply not apply for the job.