Getting an ATP has always been required for left seat drivers of scheduled air carriers (even small one like Cape Air, which flies the 402C). The cost of getting the ATP has become so prohibitive ($60,000-$90,000) that the only sources are military training or civilian multi-engine instructing, the latter yielding perhaps $25,000/year wages, weather permitting. Obviously, military training is preferable to airlines. But you can find trailer dwellers at all larger airports, where six new co-pilots share a trailer and three beds as they cannot afford anything better.
In the final analysis, if you want a flying career you have to be ready to sacrifice a lot. Far fewer people these days are willing to.
The time for pilotless aircraft is at hand.
$25,000 a year means that the type of people you attract are either 1. So in love with flying that they will do anything to do it. or 2. Have some messed up time preferences.
Neither is good for the business of flying. I know people who work at gas stations who make more than that. Without the debt.
You are correct, General Aviation is slowly dieing. The cost to get a Private license is beyond what most people are willing to sacrifice.
The change in ATP requirements in response to Colgan, would have had no impact on that mishap. Idiot politicians doing what they do best.