Do all these points also hold true if we were talking about UTD? Or are they a totally different animal?
Sure.
All my experience in this area has been UTD. The courses are pretty expensive, but in my experience, they have to be. It all goes back to the economies of scale I was talking about earlier.
Our shop teaches both PADI and UTD. The PADI instruction is much cheaper for the student, but I am not sure the shop/instructor make out any better financially with the much more expensive UTD instruction. There are enough such students to keep our lone UTD instructor busy, but not enough to bring down the price on a volume basis.
My concern about the pricing would be the situations to which some posters have alluded (but I have not myself experienced) in which there are plenty of students paying a very high price. In that case, the instructor/shop would be doing very well. In that case, competition will eventually take care of that, but in the meantime it might be a bit unfair.
There is one other aspect of the pricing to which a poster Lynne) referred:
it's possible the person who didn't pass the original class learned something from it, and actually improved . . . but couldn't afford to take the expensive class over again?
In PADI instruction, students keep going on a class until they finish it. They don't fail it because they could not quite master a technique or two and then have to come back and take the whole class over again for the same fee. In most cases, there is no (or little) additional cost to the student for the extended time. Our UTD instruction generally follows the same path, with the only additional costs to the student for the additional instruction being the costs incurred for the diving itself.
Similarly, when I was taking my full cave course (NSS-CDS), I had to do an extra day because they instructor was not satisfied with my work on the day I had planned to be the last. (Fortunately, I had planned to be there anyway.) During those classes, two other students were working on their certification (on different days) with me. Neither was ready for certification, and they were planning to return some time in the future to continue. The instructor was taking notes on where they were in their training, and they would be going at it until they were proficient enough to pass.
Making a person complete an entire extremely expensive class over again because the student is a little short of passing is a very different policy.