It took me eight years to break out of that mindset, but I'm now doing well. In fact, my job makes heavy use of the subject that I was most afraid of due to my high school experience: mathematics. The process of becoming confident in mathematical problem solving and working through my considerable personal mental hangups was a dreadful experience. Many or even most people do not break out from the hang-ups they learn during high school, especially with mathematics.
EI have nothing but animosity for the high school system and would welcome any change that makes it less prominent in the lives of teens and young adults. I'd say that a college module system like that which the OP describes is a vastly superior alternative. I think that intellectual life and social life should be separated as much as possible, which I believe is for the most part the default setting in most universities.