Great points. I think the confusion is due to the fact that debt can (and will) be restructured in a downturn, just as equity will lose value. So they're both

Great points. I think the confusion is due to the fact that debt can (and will) be restructured in a downturn, just as equity will lose value. So they're both risky when you make a poor investment. But, as you note, debt and equity both have distinct risk and payoff profiles that are determined by law.