Stock buy-backs can be part of an illegal scheme but, in general, they are one of the few mechanisms in corporate actions through which the regular joe shareholder doesn't get the short end of the stick.

How is owning a larger share of a company with proportionally less cash and a higher price per share than what you could have sold it for before bad.

Have you looked at precious metal charts as of late? Do 1/x and that's the value of the cash these companies are trading for a valuable business.