If I need to launch a complex product in 6 months or die, I don't care whether my senior developer had his entire family die from serial dysentery.
Yeah, yeah - really respectful and caring.
"Respect and care" means among other things, that you keep your business running so it can respect and care for the majority of employees. If you're going to take things to extreme, why then I need to "respect" every candidate by hiring, and "care" for any employee who just feels like taking a 20-month meditation trip to Tibet, since the woes of this modern world are depressing him.
The fact remains the same: a lean, highly leveraged startup can't allow developers to go off on vacations for 3-6+ months, no matter how badly they need it. Hell, if you're that kind of startup, those 3-6 months may very well be your entire product (or life!) cycle.
Also, taking that sort of hard-nosed attitude will make the other developers on your team more wary, which will result in higher salaries, more turnover and (if you're a real idiot) no new staff, since word gets around. Ultimately you depend on your staff, so if you play hardball you're likely to reap the 'benefits' further down the track when you need them.
* - this was your original point, not some "meditation trip to Tibet"