Could the school have instead focused on more boring general job skills with a special focus on using software effectively? I think so. I think it would have been more successful than teaching "the LAMP stack" or whatever it was they did. Not that software development is rocket science, but it's true that it's not for everybody, and neither is accounting, nursing, engineering, teaching or plumbing.
But these initiatives that try to promise high paying jobs to everyone who applies, it's just not going to work out for everyone who goes through the mill. And yeah, I think to have a long career as a software developer, you need a little more than "meets expectations." You need the drive to improve and grow after you leave the program and even once you land your job. So, I think when you get a newbie who has passion, is personable, and who submits themselves to iterative improvement, I really do think that makes a great developer.
I think it's obvious that not every single person in the world has the external characteristics to be a great software developer. But those with passion and curiosity will be able to make a great career for themselves.