Agree completely with your response. I can see both sides to the university theory of teaching, not doing that make the experience valuable. On one side, with doing your own startup there are no control structures in place on you so you are often just shooting at moving targets with the goal. The university likes to see specific learning experiences from the internship. On the other hand, some internships are nothing more than glorified mailroom people with no "real" learning being achieved.
I like your advice on going with an incubator or accelerator program to get started. Another option is if the OP is dead set on doing his/her own startup as part of the program, would be to go into the administration with a predefined list of objectives/goals to accomplish within the time period that are directly related to the degree path. For example, if it is a business degree, make the goals business oriented, such as incorporation, accounting structure, etc... If the degree path is programming related, make the goals such as having an MVP developed or building out the landing page for the site, etc...
Even interning at an established startup can get turned down if the administration does not feel the experience is valuable. So the whole point of the effort would be to prove to them that you will learn/gain more by doing your own startup.