It's too bad that some of the smaller schools are feeling the pinch right now, and I especially hate to see the Ottawa Flying Club is one of those considering closing its doors as my grandfather trained there back in the late 40's and he is one of the ones who lit the fire, so to speak.
With that said, I too wonder if maybe this is a good thing. A thinning of the weeds helps to improve things in the long run, so perhaps the industry finds the long-term, quality instructors that have spent a career training ab initio pilots at the small schools are forced to the bigger schools, and thus the quality of training for a greater number of pilots is increased.
Of course, there was always something great about going into an established flying club with history and shooting the breeze with everyone...gotta love nostalgia, eh.