I'd rather see a new university which figures out a way to support founders starting startups AND grant them some kind of credential (in case it fails). Unfortunately much of the world is credential-based (especially Asian parents...), so being able to award a degree would make a difference in who could participate. Plus, if someone's startup fails, or he just realizes he'd rather do something other than startups, the credential makes getting a regular job much easier, preserving options. And of course immigration often depends on a degree, and using educational visas to get people into the USA in the first place would be a great hack.
I think a 5-6 year program to get a SB in tech entrepreneurship, where 1-2 years are spent doing smaller projects and some regular classes (as applied to those projects), and then 4 years in a co-op program with your startup and students from the first 1-2 years, would be ideal. Maybe even grant a SB/SM in 6-8 years.
Olin College is one pioneering example. However, the main problem with the startup education + credential approach is that the barriers to such a school offering an accredited credential are overwhelming.
However, imo traditional universities also support founders and grant them a credential. Students typically have a lot more free time than if they were employed (depending on their major). It's just that the student would also have to be incredibly resistant to peer pressure.
I think a 5-6 year program to get a SB in tech entrepreneurship, where 1-2 years are spent doing smaller projects and some regular classes (as applied to those projects), and then 4 years in a co-op program with your startup and students from the first 1-2 years, would be ideal. Maybe even grant a SB/SM in 6-8 years.