I think the theory is very good but you want to include the theory in a simple way along the practical aspects. Students want to see progress and their progress is what motivates them to learn more. So if you start a computer class and the first 10 hours you only do theory and boring stuff, nobody will pay attention. But if you start with the Hello World in the first class and work to explain how it works and why it works and then in the next class you explain the theory it always works better.
It's how the brain is incentivized to learn. Great progress in the shortest amount of time.

So theory is very good, but the educational system needs to be even better structured as to allow learning and fun and a sense of progress.

Very good points you made!

Update: And I heard the "Why bother learning theoretical things when all you want to perform is code?" every single time I spoke with a new student coming to an interview.