Fray - its all about demand and supply.
As for the interview processes....Well for many schools its a great marketing ploy. Make it seem hard to get into the school and you can charge a premium for the pleasure.
The sad reality is that this industry is full of people with broken dreams who are never going to make it as a commercial pilot for a variety of reasons. Lack of acumen being one, no personality, poor social skills, no contacts in the industry to drop the CV onto the right desk etc etc..... Its a shame but that is the harsh reality that FTO's are only out to make a buck at your expense.
If your worried that you won't make the chop on the schools assessments then consider very carefully if your cut out for the job. If you are 100% sure then follow the modular path instead and save yourself a small fortune along the way. Doing the GAPAN assessment might be worthwhile.