AVCP,
I had the very same thought when I heard this. It's great news for clubs, but can only make the CPL and ME/IR instructor shortage even worse.
One might assume a good uptake of instructor jobs by PPL holders who had previously been put off from instructing by the requirement to hold CPL exam credits. With fewer openings for the restricted FI to get to 500 hours TT and the restriction lifted, there will be little or no through flow of CPL/IR hour building instructors on their way to airline jobs.
On the other hand, if the MPL takes off, will there be a need for advanced instructors?
waterpau