Similar thread elsewhere on PPRuNe just started as well, including link..
It's been announced that this is in the pipeline while ago.
I wouldn't call it 'instructing becoming noble again'.
I'd call it bottlenecking of wannabe jet pilots. Just like getting into the cockpit of a turbine helicopter in any pro outfit, getting hours up through instructing in R22/S300 (with maybe mustering in Australia, IR(H) owners in North Sea as co-joe etc exceptions) is pretty much the only way.
I can't see this happening in Europe. Some Americans may be more prone to paying for 'line training' soon, but it'd definitely cause recruitment problems in boom times and plenty headache to fresh CPL holders stateside.
At least if air taxi/freight etc isn't considered to be in the 'comm air transport', that'd help.
I agree that it'd definitely help T&Cs