View from across the Pond...
Interesting discussion. But the concept of a non-CPL non-IR FI seems a bit silly. So, is PPL considered a "recreational" pursuit, first step on the long road, or a combination of both?
For the pure recreational crowd, we've got two alternatives over here. "Recreational Pilot" with limits on passengers and operations (night, xc distances, controlled airspace, etc.). Trained by full-fledged FI's.
Or "Sport Pilot" trained by sport pilot instructors. The aircraft themselves are restricted, which effectively limit passenger-carrying capability. Operations are pretty much under the same restriction.
Neither license recognized for international use.
But I think that a PPL, with all the privileges it contains (no separate night rating here, it's part of the basic PPL requirement), should be done by someone above that level, especially if it's just the first step toward the ATPL.
No denigrating anyone's skills, experience, motivations, or the morality/justification for compensation, but if you're training potential professional flyers, it ought not be with a PPL. If you want to issue recreational-only licenses and use recreational-only instructors, that seems fair.