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Hey Dan; I've been thinking similarly; working on a follow up to this piece:
Primary thoughts are that 1. recent learning theory supports your idea and not the Cartesian mind / body split that is implied by the organization of traditional universities. Also 2. if we analyze highly selective universities by function and not surface structure, I believe I believe highly selective schools, like Stanford U, function more like your model and other colleges organized to look like elite schools provide only a only a shadow of their educational experience.