This is what we do in what we call "Zoho University" within our company. We hire students out of high school, and they go through a program that has a mix of classroom instruction focused on extensive programming exercises with a heavy dose of interaction with people building products. Basically education combined with context - why should I learn this? Why is this relevant?
This comes from my own personal experience doing a PhD in Electrical Engineering from Princeton. I would rate my PhD as idle mathematical game playing. That would have been OK as a hobby, I just wish I had not gifted 4 years of life to its pursuit. And I definitely take issue with the fact that this was tax-payer-funded pursuit - in fact, tax-payer-funding has something to do with how abstract and detached from reality these things get. So I ended up repudiating the whole thing. Zoho University is my atonement.
I passionately believe that the vast majority of students (myself included) would get far more value from this type of a "contextual education" program.