There are several points raised in this thread.
Just because JAR has closed the door on the hours building route to the CPL does not mean the airlines will be falling over themselves for a newly qualified pilot with less than 200 hours experience.
Time spent instructing is invaluable in preparation as a commercial pilot. As an instructor you are constantly monitoring the other pilot's actions, developing communication skills across the flightdeck and increasing your capacity. Many airlines know this and will still look for these same qualities. In addition, not all those leaving training will get a commercial job straight away so it may be the only option to them.
More specifically, TA has been unfairly targetted when in fact they were only doing what all other training organisations were doing at the time.
The dilemna is that as student PPLs we want the cheapest, highest quality, most flexible, best equipped outfit to train with. As instructors we want all of the same except we want to swap cheapest for best paid. Well life can not always deliver all of our expectations. What other profession is put at the disadvantage of pilots? Whilst your peers are receiving grants, loans and other Government assistance to help them with their training costs would-be pilots get nothing to help them. VAT is payable on all training costs, the NVQ scheme has long gone; both the individual and training organisation get no relief from mounting costs.
I was fortunate to complete my BCPL and FIC with TA. I found that the staff were very able and professional. They delivered exactly what I wanted, they were not the cheapest but the extra cost was, in my mind, money well spent. Since then I completed my IR training with one of the big training schools who were dreadful. Much time was wasted because of over-stretched instructors and knackered aircraft that could not cope with the student numbers. In comparison TA stood head and shoulders over the 'big boys'.
I may add that I have never worked for TA and never intend to as I am now flying for a scheduled airline. I have instructed and managed at a flying club for a couple of years so feel I have seen both sides of the argument.
The bottom line is any change in the present system, without significant help from government, can only drastically increase the cost to the next generation of pilots.
Alas, I think we have passed the point of no return. If TA and other similar organisations close due to this action it would be a great pity and can not be in the best interests of aviation at all levels in the UK.