Shawn
If you are talking about a first step - the sorting of wheat from chaff - then we can use very simple and indisputable criteria. There are probably a small number of categories that we are talking about:
1 - Those who sail through a combined VFR/IFR LPC/OPC using the excursion criteria specified in the regs
2 - Those that get a good partial pass - just failed to make it
3 - Those that get a poor partial pass - only just managed to pass
4 - Those who fail all sections
The first line I would draw would be under '3' above. Group 3 would remain 'under review' and require further training. Group 2 would be allowed to re-take the failed section(s).
Group 4 are problematic and each would require counselling depending on the specifics of their problems. Hopefully a way forward could be found for them with a bespoke training course recommended. If they went forward would depend on their resources and their sponsorship.
The above could form Level 1 - Level 2 would be a LOFT flight scored with marks out of 100 with marks awarded for the discrete elements in the LOFT design.
Courses can be recorded and open to analysis if required. Course instructors should hold a Level 2 pass at an agreed level as well as an SFI rating on the type.
It's hard luck for those that hate sims but that is the way things are going so we had better get used to it as have our FW colleagues.
G.