Rich, obstinate or just plain stupid P2F pilots who are sitting on the borderline of passing tests be they CPL, IR or LPC/OPC on a P2F course are an FTO's dream and don't let them tell you anything different. The FTO's will tell you about rigorous checks, non passing of incompatible pilots etc. But, in truth, they will keep taking the money or the pilot will just troll from one to the other. The FTO's do not share training data with anyone!
Sure many pilots going through the system are perfectly competent. They are also seen by the target industry as having sold their soul and thus are ripe for the culling as 'Doug the Head' has so eloquently described above.
FTO's who promise the world and then keep an average/ below average pilot trolling through a variety of type ratings (eg. The one who failed the 737 so got thrown onto the 'Bus) are just milking that character for cash.
When I did my multi/IR there was a chap from the Channel Islands who was on about his 7th or 8th attempt. He just kept throwing money at the problem. Eventually he passed. Good pilot? I honestly don't know but he certainly kept plugging away until either he passed or the money ran out. In a Cadet world or the world where the airline pays for the training he would have been out on his ear.
P2F is seen as an advantage by those who have invested in it but as a cancer by those who work in the industry today.
Regulation must be sought before it destroys the rather fragile terms and conditions we have at the moment.