Well I'm glad I was taught my PPL by an instructor who held a CPL. While it seems to have worked in the past under the BCPL system, I can only see this leading to a reduction in standards.
Why would an aspiring ATPL fork out for an FIC rating now only to be undercut by 'experienced PPLs' willing to work for free? I know many current FIs use it as a steeping stone to 'better things' but the ones I've flown with have all seemed dedicated to their students.
AVCP is spot on - where are the future CPL/IR instructors going to come from? It will be a long time before MPL is the only show in town, if ever.