I think it is part of the polarisation of GA. Along with a Recreational Pilot's Licence and the growth of the AUF with the blurring of VH-AUF registered aircraft eg Jabiru.
Those that want a career will go to one of the few big schools still standing but the system is flexible enough for a farmer to teach his son how to fly the family C152. Not dis similar to driving instruction really.
The PPL guys can instruct their mates but I can see a potential for exploitation.
As I said above read paragraph 1.6 it states that CPL minimum hours and aeronautical knowledge will apply.