Interesting points, bearfan. I prefer the idea of civilian work programmes to the "force them all to join the army" idea that people keep calling for over here, or the compulsory unpaid work for private companies that recently came in here. I would be slightly worried, though, that this work would actually result in fewer paid jobs being available.
But like you say, there is that real difficulty of bridging the gap between living entirely on benefits and being in full-time work that is enough to support yourself.
I wouldn't want to see people's benefits cut simply because they're unable to find a full time job they can live on, though, and I don't know how it's possible to stop people who take part time and appallingly paid jobs from suffering hardship. For a lot of people, there's no career ladder, there's no promotion, it's badly paid jobs for life - if they're lucky enough to find one in the first place!