Could you elaborate? I know LYAH doesn't teach enough to write real programs, and does not introduce necessary concepts such as monad transformers, but why is it so terrible as an introduction to Haskell and FP? (In my mind, incomplete/flawed != terrible... Terrible means "avoid at all costs").
As for your overall point, I remember articles posted here on HN about someone teaching Haskell to children (no prior exposure to any other prog lang) with great success.