I agree that Shiny should decide on what he wants to do.
IMO a for-profit website would be counterproductive. Free competition would arise, instructors and users would split their attention between two locations, making each potentially less efficient at connecting a pilot with his/her instructor. Also, the moment it is decided that the website will be for-profit, some will hold back on their ideas that would make it a better website.
On the other hand, having a website generating enough revenue to pay for its hosting/domain seems a good idea in the long run, and I'm sure there can be excellent ideas on what do to with any extra money that would benefit flight instruction as a whole.
Here is an idea of a volunteer's aviation website benefiting its community :
http://womenofaviationweek.org
Mireille does an amazing job of promoting this, not just on the website.
Dave already offers his technical resources, so cost of operation would be just the time of volunteers. Dave, would you also volunteer your webmaster skills if it turns out a Joomla website is what is needed?
As an instructor myself, I wouldn't mind creating the website, so that it's made for and by instructors to provide a service to potential students.
I like BPF's suggestions for the content. Guidelines on what to look for in an instructor and how to choose one would be good too.
I also agree that there should be some minimum set for instructors listed on the website. Whatever the minimum is, is should be enforced. The idea is just to weed out fresh instructors looking to build up hours. How do we check that? Do we need to?
Each instructor can have a more detailed page as to what specific experience he has and what he does, helping the student find out more about his/her potential teacher. With the help of the guidelines, the system could work ok I guess.
Student feedback is certainly an important feature to implement, IMO a system similar to the one on TripAdvisor (the instructor can reply to a comment made about him) would be good.
Real names. Is that legal? Instructors, students, should have no anonymity, perhaps using only first name and initial of last name. "Jean-Baptiste L." seems okay to me, and hopefully wouldn't create trouble for anyone. How do we check that?