There's so much to disagree with in your post that I wouldn't know where to begin. Nevertheless, it has been said that water finds its own level. So do people. Sometimes, people who are well qualified in one area are not so well qualified in others. Employers who can't find qualified people to fill positions are sometimes forced to accept those who are adequate but not exceptional. Nowhere does this play out more often or more glaringly than in EFL China. Administrators either turn a deaf ear to the complaints of students or convince them to be patient and that hopefully the teacher will be better with more experience. Sometimes, the teacher does get better. Sometimes, for a variety of reasons, they don't. Those that don't get better usually don't stay in one place very long. They move from place to place in China without even considering improving their craft because they know they can always get a job elsewhere. Tightening the visa laws is one way to slow the growth of that roving population.

I'm not sure what you mean, Silverboy, about "all this talk about pretend teachers." I don't really see it mentioned much except by you. As for the question of competence and incompetence, I think the difference would be obvious to anyone who possesses a drams worth of discernment. And, yes, before you ask the question, I do believe that many students, at least at the college level, are capable of distinguishing between a competent and incompetent teacher. Or, to put it more precisely, they know if they're getting their monies worth or not. Thus the need for administrative damage control.