This practice has been going in Europe for ages, and quite successfully too. The standard of Flight Instruction is much higher and reflects in how our licences are worth overseas.
The idea is to allow people who no longer hold a class 1 Medical to conduct Training, i think to PPL level.
I learned to fly from a 18,000Hr retired Airline Captain who lost his C1 Medical. The oppurtunity to learn from someone with a lifetime of experience sure beats your 300hr Grade 3.
The sooner the curent Flight Instruction regime ends the better. I have seen some woeful instuctors,who only really want a charter job , with very poor knowledge teaching the newest of students. This is very wrong.