Going back over 25 years ago in NYC, there was only 1 session. You went to it if you wanted to play or sing with other people. The money raised went to the Irish Arts Center. As the music became more popular and as this 1 session begat others, the resources were strained. People started being paid to start or lead sessions because the sponsoring organization or the bar owner needs to know that 1 or more people would be present at the appointed hour. Essentially, it became a job. Therefore, it was not surprising that people started being paid.For me, going to any session is always a matter of whether I want to be there or not. I turn down some paid offers but I also sing for free when I want. I've been paid to lead many sessions that brought in up to 20 other singers and musicians. At the same time, I've sat for 2 hours (before "relief" arrived) at what was supposed to be a session with one other person and have basically done a long, non-stop concert.
I don't think there's anything wrong with people being paid to sing and play. It would be more difficult to accept if you routinely attend a session and are never offered money... but there can be many reasons for that.
All the best,
Dan Milner