I never got this "he took advantage of young cats from the hood argument". It assumes young cats from the hood are dumb and naive. Its young cats from the hood that had their own labels and signed artists, this includes Puff.
This is no different from someone being a first time buyer of a car or house and not understanding that the bank that is financing the purchase bought the car or house. You now owe the bank plus the interest. The only bargaining chip you have is CREDIT. For a recording artist, that credit is literal. If you sign a contract with no prior credits, you are at the mercy of the label.
I don't know how their contracts were drawn up or who drafted them. And if we're using the young cats from the hood argument, how old do you think Puff was when he started Bad Boy? He wad an intern and I'm quite sure all that money ain't just land in his lap without Puff himself signing deals that where he was at a disadvantage until he was able to prove his worth.
New artists are in no position to negotiate anything unless they have written or produced for other artists. Even then, its still a battle.