I think I may have to disagree. You're making it sound as if every 'commercial' school is a Mcdojo, who promotes people left and right. The school where I train is not like that.
See, this is another reason why I love the motto that I see so many Kajukenbo schools use....something along the lines of...Kaju is not a if you can afford it, we award it art. And this is another reason why I personally feel that nobody under 16 should be a black belt. Additionally, I'm not a fan of young kids, ie: 4, 5, 6, training anyways. IMO, it seems like the majority of the time, its a babysitting session, instead of a class.
Its sad though, that many instructors, don't have the guts to tell parents that their kids suck. I mean, I've been teaching for a long time and I've been on the receiving end of parents asking why little Joey didn't pass, get a stripe on his belt, etc. Students are, IMHO, a reflection of the teacher. Why would a teacher want someone who sucks to pass? Is the almighty dollar more important?