In this section I wish you would have mentioned the cost of teaching. Lectures might not be the best option for engaging students, but it’s quite effective when considering you can teach hundreds of students with one teacher. If 50% learns, that’s a good outcome.
I believe the fallout from lectures and university in general are just a part of the design. Not all people have the right motivation and opportunity to succeed at the university. One should work out how to maximize opportunities.