I personally know several very good instructors who are desperately looking for new jobs and are looking outside of aviation, which i think is very sad !! They have " had a go " at making a living from instructing but found it just too difficult to move forward financially and feel there are no prospects for the future - and these are guys who are true aviation nuts.
Many think a good solution is to have another non flying job and instruct part time when you can, but this is not good for the punters who want regular bookings with the same instructor.
I am not sure what the implications of EASA will be for instructing in the future ?