CrescentPirate, I'm a current airline pilot involved in airline and flight school recruitment. I'd like to try and give some useful advice that hopefully is less extreme than some of this debate!
I've traditionally been a integrated fan, partly as that's the route I took, and because until before this crisis it was the best, most direct (but most expensive) route into the major airlines. BA do not take modular graduates for instance. I've always said that if you can afford it and it your financial risks are reasonable I would recommend it (this was before the crisis when good jobs were available straight after training).
In your situation I simply cannot recommend you go down the integated route at the moment. I think your financial risk is far too high and your chances of getting a job at the end of it are too uncertain at the moment. The only way I think you should consider a integrated course at the moment is if you can get some kind of sponsorship. The only one I know of is the FlyBe / Oxford one (have you applied?). Again you may not be able to afford it but that's something you could look into. At least with that you have a good chance of a job at the end and you can plan on a known starting salary and work it out.
The other alternative is to wait and either go to uni (but this is expensive these days so maybe not a good idea financially), or get a job that is either well paid so you can save money or get a lower paid ground job at an airfield etc (or do both). You could wait to see if further sponsorships happen in the future (which they will eventually), but if you can't afford the flybe then they are unlikely to be much better. My belief is that BA will probably launch a part sponsorship scheme in the next 2-3 yrs but that may be too long to wait.
The other route is modular and in your and the industry's situation I would recommend this if you want to start now. This will take longer but will give the industry longer to recover before you need a job.
The likes of BA and ezy will probably start taking some 200hr cadets next summer /winter (although they will have to work through hold pools first) so in reality maybe 2012. I actually think that we may all be surprised at how quickly the pool of talent dries up as things have historically picked up rapidly after a recession as airlines leave it to the very last minute to be sure before recruiting, by this time they may be already a bit short of pilots, coupled with expansion. Plus only 50% or so pass selection and many who have been out of training for a while may struggle in flying assessments if not current. It's not correct to say that redundant people with thousands of hours will block 200hr cadets from getting jobs as they come from different pools and are normally recruited in tandem (many airlines like a mix of experience with 200hr cadets and older more experienced DEPs).
Also, many pilots who stayed beyond 55 will be reaching 60 in 2 yrs and so hopefully there may then start to be a more normal retirement profile from 2012 onwards.
Lastly whilst the training schools are an easy target, it is slightly unfair to dismiss the assessment you passed as sales trick. I can only talk for one major flying school but actually people do fail (around 25% outright and about another 25% have to resit parts of it). If you pass their thorough 2 day assessment then statistically you have a very good chance of passing the course (95% I think). This assessment is actually more thorough than airlines used to use to pick sponsored students when the airline was accepting the financial risk (although they picked only the very best of those that passed).
Good luck, I hope you realise your dream but I don't believe spending £100k to work for ryanair is a dream I could recommend (more a nightmare).