It wont.
I run
Pilot Rise Flight School. We've been running with fully refurbished C172s (upgraded glass and modern radios) for the past 8 years now. The only way we've found to lower training costs was to HEAVILY invest in lightening the load of C150s. Such as EarthX batteries, remove VOR equipment, remove vacuum pump, repaint with lighter paint, etc. However, this only goes so far.
We've heavily researched many MOSAIC / LSA aircraft. Such as the RV-12, Sling 2, Alpha Trainer, etc. The cost to operate those still exceed the costs of C172s, but I don't think it will for long.
There are several major downsides to MOSAIC right now:
1. Time in Service vs Rotax Engine Time
For certified aircraft, the 100 hour inspection is required every 100 hours of TIME IN SERVICE. Time in service means from when the aircraft takes off to landing. They try and follow the tach for this, which typically runs 30% slower than the Hobbs on Cessnas. So if the average 100h costs $2,500 for just the inspection, is not $25/hr, it is $19/hr (2500 / 130 hours).
MOSAIC aircraft that use Rotax use engine run time for the meter, so if the same inspection is cheaper at $1,900 per inspection, then you end up paying the same exact amount as the certified aircraft.
2. TBO is a hard limit
For a C172 using an O-360, the TBO is 2,000 in most cases. Some cycles may need an overhaul at 1,700 hours, others at 3,200 hours. If you budget for an overhaul around TBO and it can safely be exceeded, then the $25 you were putting aside per hour has become profit (or really just used to pay for other broken stuff, haha)
However, on MOSAIC aircraft, even if using an O-200, if the manufacture says the TBO is 2,000 hours, it is mandatory according to 14 CFR § 91.327(b)(1).
3. Weaker Construction
Most MOSAIC aircraft right now are not designed to take a beating from a new student. Every mechanic I talk to says they see it all the time.
The final kicker is supply and demand. As they become more viable, no one aircraft will be the perfect unicorn. If the aircraft is great and will work for flight training well, then it will be priced into the purchase price or used prices. So in the end, it'll end up being the same as anything else. The only real upside here is the new amount of supply. This does push the used market down further. From every airplane I did intense calculations on, you'll have to rent basically any MOSAIC or C172 aircraft for $165 - $185 / hr to even compare with a conservative investment.