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I sense a certain contradiction? If majority of students are just not very good at self-studying methods, then they don't scale well.

Mediocre student that sits through lectures, does the homework and submits assignment on due dates will get a good level of mastery in the subject. The very same student would be totally lost relying only on self-studying - he would not even know what he doesn't know.

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It is in sense contradiction. Schools and universities are greatly limited by facilities and teachers. Self studying is not. Thus with modern technology or even with just mass printin you could theoretically educate as many students as you want. In that sense I do say it scales much better.

I fully admit that for efficient time spend and production of sufficiently educated students it is not effective method.

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