So there should be a glut of flight instructors (<1500hrs) instead?
So be it? It is not relevant to the question. Airline flying has been and should be the pinnacle of this particular career path. Whilst I accept that flight instruction is also a career choice for some, within the realms of general aviation it has always been an "aerial work" stepping stone, traditionally used as part of the path to an airline flying career for many people.
As such that particular "pyramid" would usually display a "glut" at that particular level. In summary, yes.