As the International Admissions Manager for a prominent flight school in the US, I can tell you that M1 visas are being issued. We recently had a student interview and obtain an M1 student visa from Nigeria US Embassy (About 2 wks ago). He has consequently arrived and will be starting training today.
If you come to the US on an M1 visa and obtain a PPL, you will not be eligible to get a J1 visa thereafter. This is according to a letter received directly from the United States Information Agency (USIA), that oversee the J1 Exchange Visitor Program.
I wish you the best of luck in training, and if you have any questions, don't hesitate to contact me via email. Cheers...