While I can understand that schools that had invested a lot of money in setting up a formal system would be resistant to a less onerous system they need to understand that if there are no students everyone loses.
It is also important to remember under the US system schools that have an AOC and a formal curriculum can offer reduced minimum flight times for the issue of a licence.
If a more relaxed system lead to more students then the established schools would likely see more activity as some of those students go on to things like advanced ratings or IFR. If ever there was a example of
grow the pie then this is it.