Fair, although my experience is still relevant because clients are still hiring developers that have gone through a bootcamp. There is full transparency that the clients are getting developers with limited experience, and they are still willing to pay a premium because of the bootcamp. The underlying concept is still the same - a company trains competent developers and gets a premium for doing so. The only difference is that my company is contracting out the talent instead of looking to get a commission from placements.
"If it's really possible to build a rails developer from scratch in 10 weeks, why not just just do it in-house through an internship program and avoid paying commission to these schools?"
The organizations I have worked with do not have the talent in-house to train competent software developers in a short period of time.