I attended a university with a strong co-op program, and I personally believe it is the best possible solution. Classes were focused on theory and my three 6-month co-ops were spent working on meaningful software projects at real companies. As a result, I was able to build up a solid background in Computer Science theory, didn't have to deal with the shortcomings of group class projects, and learned how to ship production-worthy code under the mentorship of real, senior engineers (and got paid to boot).
Why more universities don't leverage co-op programs, especially given the exorbitant and rising cost of college tuition in the US, is beyond me.
Why more universities don't leverage co-op programs, especially given the exorbitant and rising cost of college tuition in the US, is beyond me.