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Flight Instructor here. MSFS and its predecessors are invaluable in pilot training, particularly for the Instrument rating. The value is in the modeling of navigation systems, noot so much the scenery or exterior of the aircraft.

Set visibility to 1/2 statute mile, ceiling at 300ft and practice full approaches to your heart's content. I recommend shutting off the ATC that ships with MSFS and using VATSIM or one of the other 3rd party human ATC systems available. Use Airnav.com for free US charts.

At $200/flight hour, spending $1000-2000 on a high end PC, rudder pedals and decent joystick and throttle will save students money. MSFS doesn't replace training, but helps in handling the mental load of instrument flight.