That is perhaps what is needed for FI's to get a decent salary and perhaps become a career instructor instead of heading for the big companies.
I am glad that this is happening, if you want good FI's you have to give them decent conditions, if not they wont last long, and of course their motivation wont be the best one (remember about this chapter of human factors and the influence of motivation in the subject's performance?).
GA wont die because of lack of FI's, the market laws will rule as they always do, working conditions will improve and there will be people willing to instruct as a career rather than a way of gaining hours, for the time being only few do, i am sure if conditions were better more would do.
I personally do not think the MPL will have a big impact in GA, the people that will go this way were bound to do an integrated course if the MPL thing wasn't invented, and they wouldn't be going to do their basic training in any PPL school.
Most of the guys i worked with followed the self improver path rather than integrated, the MPL without having an agreement with an airline is an economic suicide for somebody who has not been "choosen" by a company, that is why i do not think it will have a big impact on GA.