This. I think instructor is a pretty raw deal if you want to more over to being an FO. You start at the bottom of the FO list (you might keep longevity thou?), you have interview just like someone off the street would, and I'm heard rumors that they've been slow about releasing instructors to class.

It sounds like you are qualified to be a First Officer. I would apply everywhere, and line up the best 121 job you can for May/June (regional with base in your city if it comes to that). You want to be in flying position and current to make yourself attractive Southwest and legacy airlines.