One thing that I saw was a lack of flexibility in the instruction. The instructors had to read from a script. No matter how good a script is, it won't fit every situation. That's where I think the curriculum fails.
I am in charge of education at a company that trains people to use dangerous items before they use them (I'm being intentionally vague here). The classes are mandatory before you use the equipment, but they are generally short, and teach basic usage and safety. Like motorcycling, people aren't taking our classes because they have to, but because they want to do something new. I have to trust the instructors to *lightly* modify the curriculum, on the spot, in order to be the most effective teacher possible. MSF doesn't seem to allow that (at least from my experience).
And for the guy who was helping the other students, dragging pegs and not following instructions on braking, I would have removed him from my class and backed up any instructor who threw him out. As an educator, if there was somebody in my class "helping" other students, I would ask them to stop if it was more than just an occasional tip. It's all about respect - if a guy doesn't respect the noobs in the class by shutting up, not showboating and wasting the time of the instructor, then leave.
I could have given all sorts of tips in class. I could have demonstrated my superior skills (which isn't hard to do with a parking lot full of people who don't know how to use a clutch). I didn't - I shut my mouth, listened to the instructor and thanks him for his input. He was saving me a trip to the DMV, but his real purpose was to teach the noobs. Respect it.