You asked about the "problem with the industry".
I suggest that there is no problem, at least not as far as any of the major players are concerned. Airlines have no problems finding employees to work for them (and in some cases pay for further training). Flying schools have no problems getting customers.
The only people who may perceive there to be a problem are the potential pilots who have trouble raising the necessary amount of money. There is a very simply solution for these people - don't fork out for the training, find another career instead. This will not cause any problems for the airlines (who will still have plenty of potential employees) nor for the flying schools (who will still have plenty of customers).
The only way this will change is if there is a shortage of pilots, such that the flying schools or, more likely, the airlines start experiencing problems because of the lack of new pilots.
Is this system ideal? No. Is it the best way of organising training? No. But since there is no big problem for any of the big players, it's extremely unlikely to change.
FFF
-------------