Some good points here.
I think a lot of these issues are applicable to some (not all) integrated schools whether they get fee-help or not.
First all CASA need to do is abolish in-house testing, all examiners for CPL should be independent, not on the payroll of the school.
Second, what outnabout has described is known here as The Bermuda Triangle, Jandakot-Narrogin-Cunderdin-Jandakot where many of the intergrated studes drill holes in the sky over and over again.
My (non integrated) studes are kicked out of the nest when they get their PPL, I want them to fly North where their first job is likely to be and build some hours, do some networking, I want at least one Nullarbor crossing with a selfie at Forrest, have some adventures, make some decisions, do the exams and come back with enough hours to get ready for the test. CPLs should be GA ready before the flight test, not after!
Unemployable is eg someone who walks into my office complete with epaulettes, ray-bans etc demanding to see the Chief Pilot. I tell them the Chief Pilot is only available by appointment. (They probably think I am the cleaner). They then tell me to give "him" their resume, with a covering letter addressed to "Dear Sir" with all the reasons why I should take them on as a charter pilot. I don't do charter.
And of course, why would I take them on when Qantas will be snapping them up any minute?