> What's sad is it's 500 years later and education has barely changed

From my extensive experience of four years of undergrad, the problem in your plan is "3. Therefore students can read at home " - half the class won't do the reading, and the half that did won't get what it means until they go to lecture[1].

[1] If the lecturer is any good at all. If he spends most of his time ranting about his ex-wife...