I agree John Regher's take on teaching C: http://blog.regehr.org/archives/1393 In summary, it's a useful skill to have but you're not doing your duty as an instructor if you don't make your students aware of its many shortcomings.
I particularly want to take issue with the claim in the original post that "C helps you think like a computer". C's machine model might have been a good model for the machines at the time at which it was developed, but it hasn't been an accurate model for a long time. A simple example is C's assumption that memory is flat and all locations have an address. With multiple layers of caching and nearly a couple hundred registers in current CPUs this is far from the truth. If you think programming in C is programming at the machine level you are deluding yourself.
I particularly want to take issue with the claim in the original post that "C helps you think like a computer". C's machine model might have been a good model for the machines at the time at which it was developed, but it hasn't been an accurate model for a long time. A simple example is C's assumption that memory is flat and all locations have an address. With multiple layers of caching and nearly a couple hundred registers in current CPUs this is far from the truth. If you think programming in C is programming at the machine level you are deluding yourself.