ShortStrippers comments illustrate why the current situation is ridiculous. There are many PPL holders who would make fantastic FI's, there are also many who would be bl**dy awful, but shouldn't we allow those with the skills, passion and experience teach the next generation of PPL?
Having a CPL doesn't make you a better pilot or instructor. You supposedly have more knowledge, but is it always relevant? I knew stuff all about PPL flying when I started instructing, having been a CAP509 student, I had never held a PPL, so what was I teaching?
Having a CPL is a good start and demonstrates a certain level of knowledge, but what we need in this business, is the ability to teach, no licence gives you that, whether it be a PPL, CPL or ATPL. If we had a better FI rating, we could get rid of all these arguments and just have a new breed of professional pilot. Instructors, not wanabee airline jockeys or enthusiastic amateurs.
As long as they can all get paid fairly, then there should be no issues. We are in a parlous state now and need radical action to help kick start some life back in.