I’d argue that this is the mechanism doing it’s job correctly.
If you do not believe that arbitration will rule in your favour, then you shouldn’t play the escalation game.
Essentially, because of the arbitration option, there is a financial disincentive to set the outcome to anything other than what you believe arbitration would resolve it to. In the vast majority of cases, this means that the outcome is only set once, never doubled, and arbitration is never called.
More than likely, the nuance is in setting the arbitration price high enough that it justifies the gas cost, but low enough that it’s still affordable to most individuals.