It is true that a high time pilot does not necessarily make a good instructor, but neither does a low time pilot necessarily make a bad one. We've hired them here - they started off as students but we hired them because their qualities were obvious. One got sponsored as an instructor by the Guild and is now on the N Sea as a Captain in a very short time. I have flown with 1 000 hour ilots whith whom I would trust anything and 10 000 hour pilots with whom I wouldn't trust a pram.
The problem is that the basic training needs a little more. There is a lot you can include in the training that will form good habits for later life, but you can't get that experience without having done the job. That, to me, is more where the problem lies.
I have always though that there is room for a pilot finishing school, because you can't get a job with a basic licence anyway. It could be staffed by experienced pilots who wouldn't need to be FIs necessarily as the student could be the captain. Maybe that will be my next progression....
Phil