Jews as slave owners?

The title of this post makes me cringe as I'm assuming it does to any decent person who sees it.
How can we reconcile the existence of slavery in the Torah and its normative regulation in Halacha with what is in our days a fundamental universal truth - the abhorrence of slavery in any form?
In addition, how can we as Orthodox Jews understand slavery as part of the eternal Torah which we believe is relevant to our lives in every generation? are we to sympathize with slave ownership?
Two classic approaches to this challenge are:

1. Slavery in the Torah has nothing to do with slavery as we know it from history. This approach emphasizes those Halachot that set Torah's slavery as fundamentally different. One of the more famous of these is pointing out that one only becomes a slave by either selling themselves or by being sold by the court after stealing and not being able to pay back. Other examples are that one is forbidden to task their slave with denigrating work, that a slave has the right to sue his master if physically harmed, that - at most - a person could be a slave for 7 years and other such examples. It is more of a semantic confusion than a moral contradiction: what the Torah calls 'slave', we today call 'employee', 'made' or 'cleaning lady' or 'nanny'.
Though this definitely depicts a significantly milder form of slavery than that we are familiar with from history, it tends to leave out the less "PC" aspects of slavery in Halacha; that one may forcibly sell his - Jewish - daughter as a slave if she is of a certain age, that a non Jew can be taken as a slave by force without stealing or selling themselves, that he can be forced to mate and then have his children taken from him and sold, that it is forbidden to release him from slavery, that one is allowed to assign him fruitless and humiliating work, that it is permissible to beat ones slave as long as no irreversible damage is done, etc...
To call this approach apologetic would be an understatement.

2. Slavery exists even if we make believe it doesn't. Not necessarily the same crude physical ownership of one man over another, but just as real an exploitation of the poor by the wealthy; the CEO who exploits the manpower worker who cannot make ends meet, has no health insurance or benefits of any kind, who can be fired at a moments notice with no supports or assistance once his exploitation is complete. Better to regulate such un-ideal societal dynamics, thus minimizing the exploitation, than ignoring them and telling ourselves that "slavery is a thing of the past and of no concern to us as modern people". Having slavery as a fixed element in Torah and Halacha reminds us that severe exploitation will always be among us and we must recognize it and try to regulate and minimize it. This approach emphasizes the degree to which following the Halachot of slavery would have contained the more crude and cruel elements of slavery and even progress certain barbaric tendencies among individuals or groups who are more prone to being exploited to such degrees. (i.e. a Jewish slave who sells himself can support his family without resorting to crime, one sold by the court for theft can undergo rehabilitation - leading a productive and disciplined lifestyle, the non Jewish slave can become refined through the example of Jewish morality and Jewish observance, which he becomes obligated by, etc...)
through a disciplined lifestyle and moral example of an 'enlightened' master)
An interesting and complex approach which carries with it a strong moral call and statement to every generation but also includes a disturbing patronizing attitude as well (to put it mildly...).

A third approach, which I would like to suggest is this:
When discussing the obligation to annihilate Amalek and the moral dilemma this Mitzvah poses, Rav Kook states the following:
"The prevention of possibility is to us a testimony of Hashem's will and prevention of will has many forms, sometimes a practical prevention like the fear of the ruling nations and sometimes a spiritual prevention. When such preventions exist we are pleased, as we recognize that such is the Will of the divine providence in such times".
Rav Kook says something tremendously daring - it is no coincidence that in a generation where the idea of genocide is deplorable we happen to not know who Amalek is, thus preventing us from fulfilling the Mitzvah, even if we wanted to. Through the moral development of human kind and the 'mixing of the nations' which has erased the existence of an identifiable Amalek nation, the application of this Mitzvah and all the Halachot that go with it is no longer an active part of our observance, nor do we yearn for its renewal.
We accept the impossibility of this Mitzvah's observance as a good sign about the state of humankind and The Jewish People. Through history and circumstance, Hashem has turned the Mitzvah of annihilating Amalek from a practical, physical one to a spiritual and symbolic one.  
This idea has far reaching implications with the obvious questions being - how and who can decide that the physical and/or spiritual inability to observe something translates into testimony that it is no longer divinely desired and that we should be happy about it? what other Mitzvot could you apply this idea to (Animal sacrifices? Mamzerim? not saving a non Jew on Shabbat? women's role in Jewish society?)
These are excellent questions for a different time but I would suggest applying it, in the meantime, to slavery in the Torah:
Yes, the laws of slavery were tremendously advanced in comparison to slavery in the ancient - and even - modern world and yes, exploitation still exists (though to far, far lesser degrees) and yes, the regulation of slavery with normative guidelines and restrictions served as a refining element to both master and even slave, considering the alternatives.
But even so, we believe that the abolishment of slavery in humankind, especially in Western society, is divinely inspired, divinely directed and part of the moral advancement of the world towards a more moral, more ideal, more holly world. The - divinely directed - impracticality of these Mitzvot is cause for tremendous optimism. So, what are we to do with all of the Psukim, Midrashei Halacha and Halchot about slavery? am I saying - Heaven forbid - that 'they aren't relevant any more'? to that I would say:
1. Talmud Torah is always relevant
2. No guarantees exist that humankind will not morally regress again (70 years ago slavery of the Jewish People would have been a blessing...)
3. Traces of slavery still exist in the world as well as shadows of it in our own society
4. There is an entire world of Chassidish and Kabalistic literature that learn from these Psukim and Halachot guidelines and directives for the inner 'slave' and 'master'
I believe this last approach holds within it tremendous power, combining a traditional approach to Torah and Mitzvot with the most refined moral sensitivities and high level of sophistication. It is definitely the one I will be thinking about this coming Shabbat when reading the laws of slaves and slavery.



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