You hit upon a lot of what I have long argued.
I have long argued that our higher-level education system is broken. University should be for theory, for studying theory, for studying knowledge itself and figuring out how to better all of mankind. When I think university, I think Plato's academy. Instead in today's world it has taken the place of trade schools, becoming trade schools for white-collar work.
What you suggest is good, but I'd go further: Instead of a hybrid system, I'd suggest to entire separate the job-training trade school from the university.
But yeah, there are many people who benefit from how it currently is, so any change will be slow in coming.
It would be interesting to have the open forum kind of sessions in university, where people would actually think on how to make the world better, and create next steps programs to try. Decentralized environments are good for this kind of development.