I disagree. Having interned 6 times at 5 different companies, the best ones by FAR are the ones where interns are treated exactly the same as full-time employees. The reality is that interns are not that far off from the new-grads, why would you treat them any differently? Interns should be treated exactly like a new hire, with the exception of the fact that they are temporary, so obviously you don't have to assign them to long term projects or anything like that.
I hope this is a joke. Interns deserve the same respect as full-time employees. Old school management is old school for a reason, not because its been pushed out by less efficient processes...