Is it possible that these students might have other types of intelligence?
I've got friends who are very strong visually and they thrive in visual environments such as MaxMSP and Quartz Composer. They make amazing interactive art pieces. Yet, they seem completely baffled by general purpose programming and symbolic logic. The thing is, you can talk to them and they can absolutely reason about things. They're not incapable of logic, rather a certain expression of logic.
What worries me is that we've created a negative feedback loop. The tools we've created for computing are heavily dependent on symbolic logic. This attracts people who are gifted with symbolic logic. They in turn create more tools that work best for people excel at symbolic logic. And so on and so forth.
I don't think this is an issue with people being incapable of creating mental models. A gymnast has an amazing mental model of their body and it's relation to space and the things in that space. However, we have yet to create computing tools for interactive design that build on top of that mental model. Why is that? Because we engineers have some of the WORST mental models of how our bodies flow through space.
I think this is all mainly an issue with listening, understanding and compassion, traits that seem to be stunted in the software industry. Engineers seem to have a certain predilection to talk over people. We seem to always be waiting for the other person to stop talking.
And I'll take the poetic license one step further and say that our entire industry is incapable of listening. It is always "hey, lets set up coding camps"! What about, "hey, let's set up a symposium where us engineers listen to other people about how they live their lives and what they think!"?