I agree with mostly what you have written..loyalty is or should be a great strength that companies should have in their employees and vice versa...

i do think that both are needed, high turnover and low turnover of employees...without this usually the same things are done the same way for too long...eg coding standards, dba standards..without some new people in the mix at least semi regularly (say every 2 - 3 years) those that are *lifers* in the company dont get challenged or grow within the company...i see it a lot when i visit client sites for technical implementations...a user who i see there doing the same job for 2 years suddenly get more enthused and excited and almost changes their ways entirely when new members join that company etc. variety is the spice of life....

a balance must be struck as when to retain an emloyee and when to let them go too.

just my 2c