I definitely think the OTS hiring will be coming to an end once the FAA/NATCA contract dispute is resolved and the pay is restored. As far as OTS people "already" washing out that some of you seem to not believe...we've already had 1 OTS guy wash out from my facility (level 5) and I know of several others who have been sent packing from other facilities.
As far as the FAA needing OTS guys so bad to fill the gap because they couldn't possibly hire enough military guys. Let's not forget that if this contract issue is resolved less and less veteran controllers will retire as soon as they are eligible (providing the FAA more time to recruit military/other). More and more military people will opt to get out of the military and go where the money is (providing a bigger pool for the FAA to draw from). And there are other avenues besides military/CTI...how about the thousands of controllers currently working at contract towers just waiting until the pay is fixed before coming to the faa, or the controllers who quit (not retired), quit the faa due to the white book who would come back once fixed.
I do not think that the OTS hiring will end overnight, but I would put money on it being over within the next couple of years. My advice to any of you OTS people currently going through the process is: DO NOT turn your offer down. There's no guarantee you'll get another chance. Get in while you can if this is what you want and just try to transfer later.
Also be aware that it is a completely different academy than it used to be. The academy used to be the "screen" for the FAA. People would wash out at a much higher rate leaving behind the ones who stood a good chance of making it. Now nearly (nearly, not all) all people who attend the academy make it through, meaning that there are people going to the facilities who by the "old" standard never would've made it past OKC. They are using the facilities as a screen now which is completely ridiculous. The "quality" of developmental we're receiving is far inferior to what it should be. They are showing up lacking basic knowledge that should be taught in OKC. I've talked to other training managers in my region and they say the same thing (most unprepared developmentals ever). I spoke with the training manager at a level 12 who received 10 OTS hires and was livid. When he called HR to find out what would happen once these 10 wash out the reply was "We'll send you 10 more." Guess it's the "throw enough 'crap' at the wall some of it's bound to stick" mentality of the current FAA (no offense, strictly metaphor).
So, take your offer while you can. When you get to the academy study, study, study. Passing the academy does not make you a controller and does not earn you any "rights" at your facility. Once you get to your facility study, study, study. If your not on position you should be in a book. You should constantly be asking to get time, not just waiting to be called to position. Knowledge and determination can go a long way to make up for what you may lack in skill (meaning: if you're struggling at your facility people will be more willing to help you if you know the books and show that you really care about your job, as opposed to just washing you out and not thinking twice).
This got off on a tangent, but to answer the original question...Yes. OTS hiring will come to an end if the contract is fixed. Just my opinion, not based on any fact so take it or leave it. Good luck to everybody who gets hired, I wish you all the best.