With the additional insurances, etc. there are lots of benefits using a proper school; indeed the requirements for ATO will make it essential.
While I am sure here are several who will feel that flying schools are making 'millions' from pilot training, the reality is that it is a difficult industry as has been demonstrated in recent years.
I am aware of instructors 'freelancing' before and undercutting established schools. The question I have aways wondered is what happens if something goes wrong? Do they have relevent insurances, etc?
Additionally, just because an aircraft is rented from a school does not give the 'freelance' instructor any support from the school (unless previously agreed). I wonder how many are 100% honest with their students?
I personally think that the move from Registered Facilities (with virtually no oversight) to ATO (with appropriate audits, etc) is a good move for the industry.
Maybe controversial....and yes I do operate a training facility. But if you think the process through it will lead to a better service and instructors with a reasonable chance of earning a decent living.