It is true.
Newly qualified fATPL here.
The concept of flight schools has changed dramatically. They've become pilot factories in essence. The major lack of knowledge comes from the databanks available for the ATPL exams. It's just become another tick in the box process and the authorities have helped make it as easy as possible.
Me and a few of my class mates fortunately or unfortunately had not heard of the data bank until my last module so had to work incredibly hard to get through the exam even if it was multiple choice. I managed to do fairly well and get first time passes. But, it wasn't good enough. The students who I have to compete with have avg. ATPL scores of 98%! compared to my 89%. I wondered for a while how this was possible and couldn't figure it out. It turns out that a lot of the ATPL students don't actually learn the material they are provided. Can you imagine answering exam questions based on the size of the question and the size of the answer rather than the content. This is what's happening.
Flight exams are specifically selected routes that are practiced again and again without much deviation. Throw a random hold or diversion into the mix and you'll see what happens.
But, the truth of the matter is it's only the results the airline's see. So will they hire cadets like me with an 89% avg result and a partial in one of the flight tests on a new route or, 98% and first time passes in a flight test. I have studied EU-OPS, taken the time out to learn and intern in Safety Management and CRM, got a very aviation orientated degree and do a desk job just so I can afford to glide now and then.
The truth is I won't be selected for interview before the integrated guys & girls and I'll always be at the back of the pile because I didn't spend twice the money to train at the 'approved' training centres that have all the connections. It is as much the fault of the airlines as the authorities. Now with the cadet scheme's from BA, Monarch, EZY etc that use the 'approved' schools. My batch of pilots are over-looked entirely.
I should've just forked out my £80-90k + TR money just after my A-levels and gone through these 'approved' schools. I'd probably be flying a shiny A320 now for a £1000 a month. It's all about money, professionalism is out the window.