Just to put the record straight, Easy Jet cadets are modular. While on my brush-up course at Bristol in June, there were seven EZY cadets in there with me. They are not classified as being integrated. So there you go - one of the biggest airlines in Europe is training its cadets under the modular scheme.
Integrated today just means you do a full-time course at the same school. These EZY cadets do a bit in New Zealand, distance learning theory and their IR and type rating in the UK - all at different schools, hence they are modular. You can't go changing the definition of modular and integrated to suit your argument!!
I've no doubt that there a crusty chief pilots who remember the old 509 scheme and equate that with integrated today, but it is based out of ignorance, and probably a bit of successful lobbying from certain schools. And, if the 509 course was around today, I'd be on one.
What's really odd is that I know a few guys who joined BMI regional who were hour builders from the pre-JAA days - again some lobbying has clearly been done by certain schools.
So, to decide integrated or modular? It is a gamble that you have to work out; that the additional costs will get you up the queue quicker, or will save your CV from the bin. If you reckon it does, you have the money, and the opportunity cost makes sense, then do it. Unfortunately, PPRUNE is probably not the best place to ask the question - ask the airlines.
I can't quite work out why GB Airways specifies the school, as opposed to just integrated - what is wrong with Cabair integrated graduates? That seems more politically motivated than a judgement of standard, hence the whole reasoning is probably unfounded and ignorant.