> no need for a lexer with a recursive descent parser
I'd argue that teaching how to write a lexer + recursive descent parser is more relevant in the context of production compilers: many major production compilers out there use hand-written recursive descent parsers (cpp, javac, rust, go,javascript...). Recursive descent parsers are also really nice for emitting error messages.
> It is better for a first compiler to compile to a higher level language in which neither register assignment nor memory management are necessary.
Compiling to a high-level target can be a reasonable first project(e.g., you can emit LLVM), but imo its a different objective from learning the full stack. Emitting actual ISA instructions(even sub-optimally, after all it's a university course) forces you to learn calling conventions, isel, register pressure, stack layouts etc. Building a compiler,at least for me, is probably one of the easiest ways to understand how all of it works together.
> optimize a specific function by source level rewrite
I don't think replacing optimizations with a per-function source-level rewrite works as a general model. Many optimizations are not local to a single function (for example, inlining function calls can lead to new constant-propagation opportunities). If your argument rests on the fact that not all functions are hot, a lot of general-purpose JIT compilers out there already use runtime info to decide when to optimize hot functions, so part of what you're proposing already exists.
> implementation is human readable and not buried in a binary
Is this really a requirement for your program? In most cases, I think the optimization story is more like: "code you want to write" != "code you want to run"
> Moreover, and perhaps even more importantly, by not doing optimizations in the compiler, compilation times can be much faster, easily 100-1000x than state of the art optimizing compiler, while generating equivalent or even better runtime performance
I think the actual answer here is "it depends". For long-running programs, one tradeoff is build time vs future execution time. Also many optimizations cannot be expressed in source code itself. For example, in C++, you can do stuff like whole program de-virtualization only at link time, which is why LTO exists.
Aside: I personally work on source-to-source automatic differentiation inside compilers, and I can give examples for missed optimizations in generated derivative code if you don't run existing optimization passes like LICM/CSE before differentiating a function.