I agree that professionals should get paid. Professional performers should get paid. Professional sponsors and organizers should get paid. Professional teachers should get paid.
The majority of community events involve a lot more of the community participating and are often essentially recitals with a different name. I've yet to see a dance recital in any style/genre (or age group for that matter) where the participants get paid. Envision if you will 5 year old Sally in her bumblebee ballet costume, or adult (just for fun) Irish step dance student performing. Outside of other dancers and family members *where* can one realistically propose the money comes from? What exactly is the target market for a recital with a different name? Sure, it would be nice if everyone got paid, but the money has to come from somewhere - the events are often "of the community, by the community, for the community", which is different from "corporate gig", "regular venue" or "private party".
I believe in being supportive of others in the community. There are teachers who really work very hard to promote the dance. There are sponsors who put in countless hours to bring in fabulous teachers. When I can support these people I do because it's about the dance for me. At the same time- promoting fair rates is ALSO about the dance.
Performers DO need appropriate and safe practice venues and some people simply wish no keep it on that level and not take it further. Some people prefer to avoid the pressure of the professional arena. These events provide "safe" and appropriate performance opportunities and a chance to socialize. That's different from "work".
Hopefully the participants also have a responsible teacher helping them with the business ethics and encouraging professional rates and standards should they decide to take it further.