I'm not sure that this is in the right forum but I do have something to say in response so I'll reply anyway.
The options you are considering?
1. Keep filling in application forms and hoping for a bite? - yes, can't see how that can be a bad idea
2. Do some structured hour building ie. with a instructor so I learn more, while waiting for a bite? - if you can afford it, staying current is never a bad idea
3. Pay for a type rating and line training and hope it may land you a job. ?... see the responses below....
4. Go get a sea plane rating and try find some work in Canada/Alaska - that's the way many current airline pilots started out (I believe), a good idea for a lot of reasons.
You mention regarding type rating -
. Daddy is not paying for this. Im funding this myself through bank loans
OK, firstly it does appear that you have already made the decision - and I fully understand your desire to be in the right-hand seat or something, but whoever's paying for it actually doesn't change what's happening.
. I have no current debt
That is an excellent thing if you are fully qualified. Well done on making the right choices (lots of assumptions I'm making there!) to get this far with the minimum of debt. Do you really want to ruin all that hard work just because everybody else you know has a lot more debt than you would end up with? Debt is still debt, regardless of whether it's more of less than the next person in line.
. Im in my late 20's
So you feel pressured into getting an airliner job immediately? Think long-term, Aslan. I'm only a year younger than you. We have our whole career ahead of us. If you have the option to do something as exciting as floatplane flying in Canada or Alaska, this would be the perfect time in your life to do it. You get one shot at life. Not just at airline flying (which, by the way, doesn't seem to be presenting much in the way of shots to take right now), but everything that life has to offer. OK, so again with the assumptions, I am ignoring the possibility of family, mortgage and so on.
Your other questions:
Has anyone actually gone this route and had success/failure? - Many people have had both. Ryanair in this country, for example, employs many people who have self-funded, but there are also many people who self-fund and do not get a job all over the world.
What do the recruiters think of these schemes? - I can't answer that as I'm not a recruiter. If I was, though, I would lock on to the fact that you were willing to pay for your training and then, later in your career, offer you the chance to pay for your LPC/OPC, Command Upgrade, Away-from-base Accommodation - all because I know you did it once before at a time when you had no guarantee of employment - which would make my offer a relatively sweet one surely?!
What are the pros and cons? - Pro: You learn something new
Con: As you have said yourself, no guarantee of a job for a very high cost. i.e. high risk to reward - it's basically a gamble. Should pilots gamble with risks? Sorry, I'm sidetracking... but you get my point... I hope. Con: Somebody will probably get you to work for free as part of your type-rating "cost". Once that's done, there is a high chance that instead of paying you to stay on board, the next person exactly like yourself will be ushered into your still-warm seat to take your place... for free. See what I mean about risk to reward? Not much reward when you end up without a job.
And to link into your last question..
CON:
Is this the way of the future? - It will become that way if we keep signing these deals. Forget about the possibility of being one of the "lucky" ones who gets in before it all goes to pot. You will be in the pot when we all boil. Scary? I hope so.
Don't try to kid yourself that just because you have no debt you can afford to pay for an outsourced type rating up front with no job guarantee. The ramifications on your terms and conditions in the future will add up to much more than the cost of the rating itself. That may not be what you want to hear, but there is a reason why everybody keeps saying it.
Sorry I couldn't be more positive.
AD