The long and short of it is that industry is not the purpose of education. The knowledge gained should be for the sake of gaining knowledge, not for the sake of making money.
CS students don't feel like they understand theory? The correct response is to set up "bootcamps", hosted and endorsed by the university and vetted by the faculty, outside the classroom. Research practica and MIT's Battlecode and the like are examples of hybridizing this: using the structure of a class schedule to explicitly set aside time for building software.
It doesn't really matter; my opinion isn't going to sway anyone. The university has largely already been commoditized and that's a part of why it's so vulnerable to disruption. The purpose of the university is now hugely to serve as a state-owned racket at the behest of industry. And of course industry is unimpressed by the transient state it's currently in, as you are unimpressed: what industry really wants is, well... these bootcamps: ways for industry to make money so that industry can have more workers who make them more money, neatly cutting the state out.