I have seen many dozen level 1's ski. There is a huge range of abilities. It's not about video of the ones who failed, it's about there not being appropriate levels of certification to handle the vast majority of certified instructors.
There should either be 4 levels, or the Level 2 bar should be lowered so that experienced and skilled Instructors are recognized as being as such, more so than new Level 1's.
While I agree that another level would help things on quite a number of levels, it is common that the higher one elevates in the stratification of ability level for just about any discipline, the more aligned the types of abilities become and is an element that has been referred to as "competitive ability filtration" a term borrowed from Ecology academics and better understood as the survival of the fittest. Based on this pragmatism, we should see lower percentages of passes the higher one goes in level. The less consistency in the shrinkage of percentages per level risen over a duration indicates a lack consistency in the process itself.