IMHO, a $5, 45 min trip should just never happen. Algos should price that properly and drivers should get more transparency so they can choose to not accept bad terms before it ever becomes about cancelations.
And that should be after Uber's cut, not before.
We don't need to subsidize car travel any more than it already is, especially by tricking vulnerable workers to slowly trade their asset value for cash.
I'm glad you wrote this comment, but I have a slightly different solution: Uber should just subsidize the ride. Uber brings in billions of dollars in revenue – not every trip needs to be profitable for them. (Of course, not without limits; if a driver is regularly unprofitable, Uber should stop offering them trips or fire them.)
I've certainly never got such a fantastic deal as a rider.
The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber.
Anything else is abuse and a lot of rationalizations to put your mind at ease.
And if you think I'm wrong, tell me you'd be OK being treated like this as a customer: never knowing what the price will be and not being able to cancel without being taxed or punished. Wait, that's more or less the taxi industry that Uber is ostensibly fixing by turning the tables and putting the drivers and the wrong end of the shit stick. So what was wrong in the past is ok now because you work for the company who affords your salary because of these practices?