My 2c based on gut feel...
I don't think flying training schools have ever been a great way to make a lot of money even when economic times were better.
I don't believe overseas companies are training here to make money on the training side - they have a need for pilots trained the way they want and are looking for a return on investment later, by feeding in pilots they need, the return is not on the initial training itself
In Oz, I think there is still a market for good operators who provide quality customer focused training and they don't have to be big either - you won't make a fortune but will make a living and if you enjoy that sort of work, that is why you would persist doing it.
The big issue is training and retaining good instructors, instructors are a big investment and many instructors are looking further down the runway than a career in instructing (which is fair enough). Good instructors and a well run business are what matters, get that together and the business has a good chance.
It would be great to see people coming out of airline careers thinking of maybe giving a bit back at the end of their careers feeding back into the system as instructors but I also understand many are a bit over it by then, sadly. Such people would offer great mentoring to newcomers but can understand why they want to retire quietly.
Not sure the large sausage factory, cookie cutter schools ever really have a long term viability, too dependent on economic conditions - when the 'pilot shortage' phase of the inevitable boom/bust aviation cycle collapses they tend to be too cumbersome to scale back.
Smaller operators who offer good value or specialised/niche training (I think) will be around for a while to come. They are not in it to make their fortune - they enjoy and are proud of what they do.