I would have to say it was the quality of instructors, who themselves are a product of the FAA. Since, in my region, the FAA does ALL initial cfi checks...
I was once giving a checkride to cfi who was getting his MEI. i was being observed by a fed as it was my renewal month. Unfortuneately I had to bust the guy on his lesson planning which falls under FOI (another discussion for another thread) On an add-on ride that is not a required task, tho an examiner has the right to test anything, FOI is tested by default since you must have a lesson plan prepared for multi engine topics. After all was said and done, I was chided by the fed for "making an already difficult ride, tougher". Gimme an f'n break man, it was totally fair. He then wanted to find out who did the guys initial cfi ride. I think he was basically telling me that I made his buddy at the fsdo look bad for busting him on something he should've been busted on the first time and didnt want me to do that anymore!
Long and short of it, the faa helped create the problem that congress is trying to fix, I do however think the ATP rule is a good start, though it may not be the catch all to getting more refined and experienced aviators in to the right seat of an airliner.