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Hope I can win without playing

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Take the paycheck and your sanity; no one cares what firm name’s on your résumé after year five.
If they pay less they are less prestigious…
How can they be more prestigious and pay less? Don’t all prestigious law firms pay market?
If there's a pay cut, it's not that prestigious. All prestigious firms are paying top of the market, and some pay above market bonuses. Are the hours brutal? Yes. Is it worth it? Depends on what your goals are. What you described sounds like a firm with nonsensical perks and not enough pay. Save your sanity and your pockets.
What are your goals? If partnership, your current firm will all else equal be more viable for that path, but it will ofc depend on your circumstances and relationships/status with the other partners and decision makers.
If your ultimate goal is in-house, all things equal the more prestigious firm is better, but again depends on the specifics and e.g. which shop works with better clients (and/or ones you’re more likely to want to work in-house for).
Increasingly the best firms are lateral hiring partners with existing books from firms they would have historically deemed as “lesser”. Cravath used to pride themselves on never hiring lateral partners and, well, look at them now lol.