I can make a judgement on an FI without a checkride. The flight is just ticking a box and for me always just confirmed my views.
A nice little (legal?) earner and some are obviously doing it already SAS because as you say (and most here know!); "checkrides" are invariably a formality, therefore this behaviour is a pure money spinner at the expense of the applicant. Despicable really but it's worth mentioning that the vast majority of flying schools are decent outfits. Sadly, there remains a few 'Arthur Daley' characters around, and there'll be more popping up as this recession gathers pace, but the good news is that they're quite easy to spot and you don't have to have a background in used cars to avoid them.
Those who get stung by them are good examples of natures natural selection in operation.
VFE.