Truthfully I don't know what instructors today know (generically speaking). 30 years ago nobody I trained with looked at kata application as I do today.
When I worked out my beginning understanding I was fortunate to train with those who taught and I worked with them and didn't keep track of others. For example in the Chinese Arts, their teaching paradigm is very different from karates. All the moves have concrete answers, but not multiple ones. of course their forms are often so long the applications are more than enough to approach infinity anyway.
In today's mcDojo world, I don't belive many of them take the time to pursue these studies. They're only catering to their students simplest interests (from what I've observed).
For example in the Shotokan group I trained in, except for skill building in the kyu level, these studies do not begin until Black Belt, and then continue with new material for decades.
My own approach (as mostly a youth karate instructor) is kyu spend time building basic skills, and kata technique application remains a black belt lifetime study. Which, BTW, you really only need one successful technique, but the lifetime of study, keeps pushing your abilities. IMO the more important goal.
And for what other instructors believe, I don't keep track of them. Too busy with my own work.