Diver0001:
There are a lot of things that influence the quality of scuba instruction but I recognize absolutely nothing in this line of thinking.
Perhaps its because you're too close and no longer on the consumer side of the relationship. I've personally seen it, as have others who have stated as much, here in this thread.
I agree that there are bad instructors out there but I would submit that the worst of the worst act out of a sort of desperation related to not getting paid enough rather than the greed and corruption of easy money.
Yes, there are all types. I find that while it varies with location, problems with not getting paid enough (vs greed) are rife within the dive industry for fulltimers at resorts, and this is in no small part due to the long line of often young and "Newbie" Instructors who are willing to take a miserable zero paying job in order to have the reward of diving in an exotic location. This results in a labor oversupply that is then exploited by the business owners.
(think maybe a 3 years/250 dives requirement can help cut back on the ranks of these misguided romantics?)
And as nice as these people can be, probably 90% of them won't be around in 2-3 years. Some don't realize how much hard physical work they're in for how little pay, some have personal problems that they're running away from, others are rudderless drifters. Its not surprising how many of them end up with drinking problems, and its not rocket science that half of their "money problems" are thusly self-inflicted.
An oldtimer I know calls them "Dive Gypsies", because they'll burn out in a few years, which prompts them to drop out and move on. Some oldtimers won't make friendships with them because they don't want to get caught up and dragged under by the burnout cycle.
True, these Dive Gypsies can (and do) move on to another dive resort someplace else, at least for as long as they've not been unlucky enough to get bent, as this is a "black mark" on their employment records, or have other real problems.
Perhaps you haven't met any, but I've known Instructors who have gotten bent but then chose to do IWR instead of going to a chamber because they believed it was worth the risk of permanent damage to keep their resume clean. Fortunately, getting bent has less of a stigma today than it did years ago, so this practice is becoming less common.
Another friend was a good Instructor and UW Photographer until they lost this livelihood because of a career-ending DCS-II hit while on on the clock. Suffice to say that the employer never had to pay a dime in workman's compensation because this happened outside the US or EU.
The bottom line reality is that outside of actual dive instruction, its unlikely that the standard recreational Agency dive career provides its recipient any marketable skills other than basic Service Retail. YMMV, but if you want to be around water and enjoy diving, diesel engine mechanic is IMHO a better career choice than any Agency's Dive Instructor.
-hh