There is a shortage as anybody who does a course gets a job. For example can you imagine if anybody got themselves a frozen atpl they'd go into a turbo prop or jet? They say there is a pilot shortage at the moment, but its not in the airlines. I agree that the market is as buoyant as it has been for a while but still...................
I have been to a few schools and it seems that the majority of their instructors either can't fly multi crew due to their medicals or instruct part time with an airline job or other well paid job.
I understand where you are coming from in that instructing isn't the best paid job in the world, will this change? I doubt it as the overheads that flying schools have won't really allow larger wages other than increaseing the hourly rate of the a/c which is already hellish