One thing they don't really teach you about in school is 'competitive pressure' with respect to software engineering: what features to ship, when to ship, dealing with competitors, etc.
One suggestion John "There will be product" Steven had after the experience which was ECES 398 Fall 1999 was to take the class of 50 or so, split them into five teams, and give them all the same project/requirements. Then, for the grading, rank the implementations and give the team members grades corresponding to their ranks: A, B, C, D, F.
Somewhat harsh but... I don't know if there'd be a more realistic way to introduce people to the 'real world'.
1:44:54 AM 
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