100% incorrect. A good flight instructor learns good command and decision making, has numerous oh ****** moments where you've got to make a quick decision (that word again...) to appropriately resolve the situation, and must have a wide ranging knowledge.

There are junky low life 135 pilots that barely do the minimum and barely cut it, and there are instructors that are the same.

Two of the worst copilots I flew with at my regional were high time freight dogs... which baffled me. They were horrible sticks, had terrible radio work, and zero decision making ability. You can find a examples of bad pilots from any genre that you can think of (including military, though a lower incidence rate due to the training).