DON'T BE SO SOFT. If they are asking for money but guarantee you a job then take the offer. That's a good offer, there are many firms out there who will take the money and not guarantee you a job! I.e. every FTO and TRTO you have been to so far. This is just another step in the job chain the difference is you are not having to guess which type rating may or may not be attractive
Vortex... I can't say I agree with this at all - you are effectively endorsing a company that is not prepared to commit or invest in a potential employee on any level. That says a lot about the company, and indeed sadly a lot about the evolving state of the pilot employment market! If they offered a bond with pay from day one of line flying (at the very least) then that would be much more palatable. Its ludicrous enough nowadays that pilots are more and more being forced to pay training costs up front (the fault of a minority but the majority are affected!) but to offer no commitment at all until the end of 40 sectors - come on!!!
Number - your comments are fair and reasonable and IMHO if you can hold out, then I most definitely would. Add that to the fact that you say nobody really wants to stay there (I wonder why?!) I would imagine the CRM and general ambience isn't too great either. It is indeed a question of gaining experience, but at what cost?