Even at the college level, education doesn’t seem to extend past “teaching to the test” horrifyingly often (horrifying, given the amount of time and money our society is spending on it).
I saw signs of that academic dysfunction from other departments too. This was at a very non-prestigious state school, but that's the type of school that most students attend. There must be millions of people in the US walking around with degrees in subjects they don't know much about.
My alma mater didn't really push internships, but in retrospect perhaps a strong internship program would help students self select against employers.
In my opinion, the problem is not with the testing regime, or even “teaching to the test”. It’s the tests themselves that suck. The top priorities for tests designed and used today are ease and efficiency at mass administration, ease of grading, and reduction of subjective in favor of objective measures. Is it any wonder that multiple choice questions are king?
When I went to university in Eastern Europe (majored in Mathematics), in many courses we had a final oral exam. The professor would drill into you, and would not get distracted by regurgitation of irrelevant memorized stanzas, he wanted a clear explanation of everything he asked about. This approach to testing is not perfect — for one, time limitations only allow to cover rather small part of the topic, and you might get lucky to get something you actually know. At the same time, there is really no way to teach and study to an oral exam other than actual understanding of the subject matter. However, this is insanely inefficient for the grader: this makes testing a full week’s worth of constant work, as opposed to few hours of just sitting on an exam, and then few more hours grading (even shorter if it’s mostly multiple choice problems). No wonder teachers prefer the latter.