Just because a person has a black belt it doesn't mean they are training and peaking year round like competitors Half their age.
It's silly to think they are.
Also, I've seen ppl train for two years who still can't execute an arm bar correctly. They are just too uncoordinated. Doesn't matter how much or how long they train, they won't achieve a black belt, it's not in the cards for them. Maybe a symbolic one after 20 years. But not based on their game.
My golf analogy. I would equate Scratch golfer and black belt on the same level. Average person is a 30 handicap in golf. Trying to become scratch, you can play your whole life and never come close to achieving it. And every scratch golfer isn't a tour player. Much like every black belt isn't a world champion. Similar endeavors IMO.
Finally as long as standards remain high. I think bjj will be ok. 
There are three types of fakes...
1. Totally made up bs. They've never been promoted by anyone, or have been promoted by someone fake, they've never trained jiu-jitsu or have done very little or another grappling art. These always get found out by the community.
2. People who pay for belts. They have been given a belt by a legit instructor in exchange for money. Maybe they train, maybe they're fat karate instructors who don't roll due to injury. They wear belts they shouldn't for their skill level.
3. People who train regularly with legit instructors, but are obviously getting lazy instruction in exchange for easy promotions.
I'm interested in the belt seller's,and what team/lineage they're affiliated with so I know who to avoid. PM me if you don't want to discuss here and I will not discuss it here or anywhere else.
The course in golf is comparable to your peers in bjj.
I actually know a guy named "Coach Al" who wears a black Paragon gi and a black BJJ belt to teach grappling. He's self-taught; he's never taken a BJJ class. He just learned a grab bag full of grappling moves, mostly online.
He even told me he gave himself the black belt because he felt that's what level he was with the gi. I said, "So why a Paragon patch...?" he said it's because he "respects Franjinha" then added, " I like his stuff".
Knowledge wise his level is "old crazy guy who learned by watching moves online". So he KINDA knows grappling basics, he's just not good at them.
He is in his 60s.
I have trouble taking him seriously as a "fraud" because 1) I don't think he charges any money to teach (he mostly teaches kids in the hood) AND 2) he doesn't lie about his rank. I just can't take him seriously in the same way I can't take a guy in a speedo and stethoscope rollerblading in Venice seriously as a "fake doctor".
Actually, he's a nice guy, but just off his rocker. I sort of nicely expalined why people would be upset about his outfit, but he just didn't get it. I'd get mad at him, but it would be kinda like getting mad at a retarded cat or something.
He did try to share some gi chokes with me. it was both sad and funny. He couldn't remember how to do them. I actually felt sorry for him.
wow...
shen -
I actually know a guy named "Coach Al" who wears a black Paragon gi and a black BJJ belt to teach grappling. He's self-taught; he's never taken a BJJ class. He just learned a grab bag full of grappling moves, mostly online.
He even told me he gave himself the black belt because he felt that's what level he was with the gi. I said, "So why a Paragon patch...?" he said it's because he "respects Franjinha" then added, " I like his stuff".
Knowledge wise his level is "old crazy guy who learned by watching moves online". So he KINDA knows grappling basics, he's just not good at them.
He is in his 60s.
I have trouble taking him seriously as a "fraud" because 1) I don't think he charges any money to teach (he mostly teaches kids in the hood) AND 2) he doesn't lie about his rank. I just can't take him seriously in the same way I can't take a guy in a speedo and stethoscope rollerblading in Venice seriously as a "fake doctor".
Actually, he's a nice guy, but just off his rocker. I sort of nicely expalined why people would be upset about his outfit, but he just didn't get it. I'd get mad at him, but it would be kinda like getting mad at a retarded cat or something.
He did try to share some gi chokes with me. it was both sad and funny. He couldn't remember how to do them. I actually felt sorry for him.
I'm pretty sure this is the next big Internet BJJ comedy sensation right here.
Dennis Hayes -http://youtu.be/Glmey3swpUE
holy crap, i just watched thew paredes videos. that is hilarious. I have one of those guys here
Brabo choke - I lol'd
Josh Mancuso -
Its all gray, I have gyms in my area that pay an affiliation and wear brownbelts with the skill of blues but are considered to be respectable because they pay affiliation fees to a organization.
What is the answer? Stop caring about what happens outside of your academy because BJJ is fucked, we will be as respected as karate in a very short time due to brazilian sellouts and americans waving cash to get the accolades and respect they want so badly.
fuckin this !
Rstrength -Spc Lee Lohff - Facilities run by blue belts who got their belt via the Gracie Academy online course. There is one in Sioux City, and every single blue there is beyond awful. They have the largest student body of any place in that town, and there is a solid Romolo Barral purple in Sioux City. He has, maybe, 10-15 students. It is obscene. I was tempted to dojo storm at one time, but what is the point? There is nothing that can shake these folks from their delusion of bjj competency.
I made an account to comment on another thread, but I feel like I need to clarify. This is my school. We are teaching Gracie Combatives and we are a Gracie Certified Training Center (www.GracieAcademy.com). I trained under a questionable instructor for about 5 years, before joining the Gracies. I did earn my blue belt via the online course. However, I tested in front of Rorion, Ryron, Rener and other Gracie Black Belts at the academy in Torrence for the right to teach the Combatives (white belt) curriculum. Neither I nor our students have ever claimed to be anything more than blue belts. We do not claim to be better than any other blue belts and acknowledge that we progress at a slower pace than students at a traditional school. All of the students understand my background. We all enjoy JJ and wanted to continue learning. We are all aware of the other instructor in town and the students probably each have their own reasons for choosing our school.
this is what waters down bjj.....rorion could care less how good you are....but im sure you are cheaper then the purple in your area. not knowing you,it sounds like to me you are just a better business man then your competion. when in reality you dont belong charging for your instruction unless you live on the moon.
In 
Embrace the power of not giving a f@ck what other people do.