Academia is often sheltered from the realities of the (any) industry. They'll often sell you on the fact that it takes 2/3/4 years to get educated, and when you get out the industry will be in a better position than it is currently. They'll say, well you won't get a job now anyway so why not spend your time doing something useful like studying. They may be right. Who knows where we will be in a couple of years.
I've just noticed you are referencing flight training institutions specifically. Yes there will be an influx of spare pilots for some time, but the money making machine rolls on as always. Carry on.