Neither is there any reason for the IR to be taught only at professional FTOs.
If you don't go for demonstrated competence, the whole thing is bogus.
"Industry interests" is what that bit is about.
And this prevents penetration of the GA market, because most pilots are not within "same day drive there and fly" distance of a pro FTO, so are looking at a residential deal.
Another very simple thing the FAA has got right (freelance instruction and freelance (FAA DPE) checkrides).