ali and south coast, please rememeber that everyones situation is different.
For alot of people the pay cut to full time instructing is more than the price of a type rating with regard to lost earnings in a year. Also I have known alot of instructors who have still ended up paying for a type rating after instructing for several years.
So it really isn't surprising that people view paying for a rating as a way ahead.
Not an ideal situation but that is the way the industry has turned.