Why aren't there more integrated schools??
Simple answer. There isn't the demand. When schools like Oxford start advertising for modular students you can bet your bottom dollar that integrated numbers are down or margins are being tightened. I remember the days not so long ago when schools like Oxford wouldn't touch a modular student with a barge pole and were actively advocating how integrated was the only way to go and airlines supposedly thought less of moudlar students. All marketing hype of course but nonetheless thats what they were up to.
If you don't believe me about the demand then check out the CAA website and see just how little CPL's are issued each year and then contrast that with the number of FTO's registered with the CAA that are all jockeying for the business.