Lets not pretend this is anything other than a drop in standards to fill empty instructor positions.
Yes, ultimately that is precisely what it is. And for a reason. In the same way as a wannabe driving instructor does not need to know all about the innards and regulations pertaining to HGV trucks and Pendolino trains, the wannabe PPL instructor has no need of the majority of the knowledge that is in the CPL examinations.
I have no doubt that I could pass the CPL examinations - I have passed plenty enough other exams in my time and have spent a career in high tech where one never stops learning. The money is not an issue either, in the overall scheme of things. But I have never found myself needing to learn utterly irrelevant stuff in such volume as seems to be required for the wannabe FI. It is that that I object to. My time is precious to me and I would rather spend it on things that I enjoy, such as flying.
I see no evidence that the old system, which did not require CPL knowledge, produced inferior FIs who in turn produced poorly trained PPLs. Au contraire, the usual consensus seems to be that the training was better in the old days. A return to the old system is eminently sensible and to be commended.