Pilotchute, I am also seeing and hearing of more GA companies who will select a self-funded pilot over a VETFEE funded pilot any day. As a broad generalisation, self-funded pilots are more likely to turn up on time, be prepared and have done some homework prior to the lesson / flight. VETFEE pilots are more likely to be at uni because Ma & Pa want them to do a degree, and becoming a pilot might help pickup chicks.
We are also seeing the first failure rate when GA pilots move from singles to twins (piston or turbine)...there are those who shouldn't be flying anything more complex than a 206, and there are those who shouldn't be flying...
On the regional airlines, we are starting to see the difference between cadets who are trained to operate an aircraft within a particular set of paremeters, and those ex-GA jockeys who can fly an aircraft. Both are now appearing in the captains seat, and the difference is obvious.
The RFDS situation is just the tip of the iceberg.