You are correct, this is about the level of knowledge and leadership at the
top of the organisation.
However, I would suggest that your notion of a student's insight into the issues is flawed. I know that I asked around and got all the advice I could get before I commenced training - but with some 17 years experience (has it really been that long?) and hindsight I can see things differently.
At a time when experienced members of the industry are ALREADY lamenting the decline in graduate standards and B1 himself has identified instuctor standards as a contributing factor, is this
REALLY anything but a move to placate the flying training industry?
The headline in Bruce's Bulletin says it all: "A win for the flying training industry"