Unfortunately this industry has been well and truly screwed by the willingness of people to either pay to fly or to accept peanuts. There are just too many people willing to throw endless amounts of money at airlines and FTO's for the chance to get into the right hand seat of a jet. For some people a jet job is not what they are looking for. The problem is any job that might help get people into that uniform is inundated with applications from people just wanting to use it as a stepping stone into the airlines. That along with increasing costs means there is no money in instructing or GA.
Of course its not the fault of the FTO's, they are a business and do what they need to make money. Its not the fault of the airlines either, if they are getting thousands of CV's every week from people willing to sell their mother for a chance to get in the flightdeck then they are going to reduce T&C'c and bring in P2F schemes.
The only way I can see things changing is if the supply of people willing to pay for a job dries up. I think however that this is unlikely, the recession doesn't seem to have stopped it and there could be a big influx from asia in the coming years.
The job of pilot was always going to get more and more mundane, people nowadays expect to pay more to park their car at the airport than they do for the flight ticket, this can only lead one way im afraid. T&C's will continue to decrease as long as there are more pilots than jobs. Soon the role of FO will be part of the training process and we will see schools offering 0 to captain courses. The really sad thing is there will be a queue of people willing to pay for it.