My .02 pesos on this is a little more involved than just the airline industry.
1. The standards that are set for ANY student in anything today are too low. When things get tough for these students, the standards aren't held, the standard is dropped. What is the lesson? In corporate world, it's status quo. In aviation, it is potentially fatal. Or maybe disqualifying.
2. The "best" flight school have had to reduce their standards due to a massive influx of Asian, and other non-English speaking countries. If the "best" have done it, what has happened to the marginal flight schools? I'm in flight school now, and am watching kids get shoved through the pipe in order to maintain numbers. Some of these kids are at 30+ hours and are still not able to land a C172. Yet, somehow, they leave to go fly for Asiana, Korean, or China Southern with an MEII. These kids are getting selected to fly 767's after a short ground school/training/type rating.
3. For me, I'm not sure that I'd want to take $18,000. I'll stick to being a CFI that pays competitively. I think that a competitive CFI wage is protecting these qualified candidates from the shenanigans of the regionals. CFI's getting paid $25-$35 an hour, with flexible schedules, control of their time, and an endless supply of Asian pilots to train have no incentive to leave for the world of $18k a year.