mostlytossas, I would venture that if the PPL pilot is as experienced as you say they are, they would easily meet the requirements for a CPL anyway, just a quick dual check or two and a flight test, as well as a few exams. Then, the training on how to instruct could come from, well, the instructor rating.
The problem with the current system is not that young "snotty nosed" people are instructing, it's that experienced pilots are not. Whether that's because there's not enough incentive for them to come back to GA, or they're just not willing to give up the jet job, it's irrelevant. There are not enough experienced instructors. Regardless of what you think of grade IIIs, they are not the problem. Indeed, if all the "snot noses" quit tomorrow, a high number of schools would have to close down, as they would have not only no experienced instructors, but no instructors at all.
Arrrr