employ such losers because they can make use of the ego of such people who could call themselves "teacher" or "Director of Studies" then, while in their home country they would be actually considered the joke that they are and would not employable in such positions at all.

Agreed. I would go further and say that these types of people are actually unemployable in any capacity at home due to their arrogance and grandiose ideas. They belittle, and bully others, and are very good at talking but not doing. So when they come to China, the chinese with their love of style over substance, will take on some good looking young yuppie wannabe who is afraid to return to his country and be unemployed, and he/she will feel all high and mighty with his title of DOS or Senior teacher or some other such nonsense title. Absolutely sickening, but it shows how rotten education is on the chinese mainland.