I didn't say the ATP certificate is extortion, or wrong. The ATP is a valid certificate, although with regulatory changes much of it's meaning has vanished over the past few years.
My reference to regulatory extortion was regulation which has created places such as Sheble's. There is no significant training, no proficiency, no knowledge passed on. Pay the money, get the certificate. It would be difficult if not almost impossible to blow the ride there. What that means is that the FAA has created a nitche for someone to take fifteen hundred bucks to give you a certificate that by all rights ought to be hard earned.
Much like the medical certificate. We could have a real exam; determine potential health problems, etc. I'm not against the exam I get now; it gets me through, and is a cursory exam to see that I meet the certificate requirements of Part 67. However, by establishing designated medical examiners who can charge what they do for what they give, the reality is that it often boils down to FAA sanctioned extortion. In many cases, by paying for the office visit, I've paid for the medical certificate and I get it. The FAA has created the market and we are all beholden to it.
The Knowledge test is the same thing. The requirement was established, and formerly one could go to a FSDO or GADO and take the test for no cost. One could always pay a DE to sit and take the test...again amounting to extortion (why couldn't anyone give the test, instead of a few select examiners who get the ridiculous fees for performing a government service?). Then on to computerized testing centers, and now folks have no choice but to pay the few authorized centers the ridiculous prices they charge to take the tests...tests that on their own have become jokes with answer books widely published before hand...FAA mandated, authorized, and approved extortion.
Don't even get me started on the whole designated examiner system. By setting up a few select individuals who can charge ridiculous fees such that someone can have the privilege to see if their skills are up to par, the FAA has made free enterprise of a government function, and then taken the freedom by parceling the privilege for examiner status to a select few. Accordingly, there is no competition, no fairness in price, and it is tantamount to racketeering.
Programs like the ones being discussed are nothing more than operations which pander to this artificial nitche; it's not about training pilots and preparing someone for an important rating to recognize them for their experience, talent, and ability. It's about taking fifteen hundred dollars, usually from someone earning just enough to feet a rat, and selling them an hour in a beat up junk airplane and then giving them a certificate for which the government doesn't charge a cent. Something is very wrong about that.