As a punter at CAC I have the following observations:
(1) One reads from time to time, here and elsewhere, all sorts of horror stories about safety issues, professionalism issues, good business practice issues, with instructors, examiners and clubs.
(2) I have had no such negative experiences at CAC.
(3) OK, from time to time there's an instructor that doesn't like my flying very much, but that's what check rides are for, and this usually happens on occasions when I don't like my flying very much either. The instructors that the club hires deal with such occurences in what seems to me, the paying punter who's being told off for being useless (not something that happens regularly in many other businesses!!!), to be a perfectly reasonable manner.
(4) It's entirely possible that they err too much on the side of caution and refrain from hiring people who could actually do the job. But hiring people (which I've done plenty of in other fields) is hardly an exact science, and an employer might feel that it's preferable to miss good people rather than risk hiring bad ones. When I've accidentally hired the wrong programmer I can sit them in the corner and give them something harmless to do remote from customers until I've persuaded them to leave again, and hope my boss hasn't noticed. You can't do that with flying instructors - every instructor gets to perform in full view of the paying punter.