Very late to the thread but I read it all the way through because this a top of mind subject right now that drove me back to Core77 and the discussion boards today. While I’ll wait till I can post my own ‘question of interest’ when the software permits me to, since I’ve gone back to new user settings, let me add a few thoughts on this from the end of 2022 (“the pandemic years”) to synthesize some early thoughts on what might be missing from industrial design education. My eligibility to speak on design education and its evolution, both in the North American context, and in Europe as well as Asia, will either emerge as part of this screed, or I can tack it on later for those who may be interested.
The first thing that came to mind as I was reading the OP is that perhaps what people are missing is a “grand unifying vision for design”, and I suspect this is why the Bauhaus is referenced so often. Regardless of its contemporary relevance and impact (and yes, Ulm was more influential in its outreach and impact) what really sets the Bauhaus apart was its clear vision and mission, its design philosophy, its values, and the coherence of its narrative and story of what it was aiming to achieve, as manifested in its approach to education.
For discussing what I mean by this “grand unifying vision of design” I refer to an article by Richard Buchanan based on his conference keynote in Helsinki in June 1994. Its called Branzi’s Dilemma: Design in Contemporary Culture and the issues it raises are all the more visible today due to our deeply interconnected digital zeitgeist, accessible via our screens on demand. Buchanan titled it in response to an essay written in 1985 by the Italian designer Andrea Branzi, with whom Buchanan proceeds to debate on the future of design before concluding with his own directions.
Branzi’s call for action envisioned a second modernity – one which was fragmented, tribalized, and comprised purely of individual designers pursuing their own concepts of identity and values, unguided by any one singular vision or value system. Thus, in Buchanan’s words, Branzi’s dilemma is that of identity and moral purpose, heralded by a collapse of modernism, and thus a “unifying ideology of design and world culture” (Buchanan, 1994; 1998). It is impossible to summarize or synthesize Buchanan’s case against a lack of unifying ideology, with default to power and control, in the context of design and designers, and the power they wield to shape our world. Instead, here’s a screencap that many may recognize in industry and practice.

This was said almost 30 years ago in 1994. Going by what can be observed through my screen alone, it is not hard to arrive at the conclusion that this where we are now, in 2022 as we grapple with persuasive design, dark design, addictive design, and the plethora of individuated ills of fragmentation, tribalization, and lack of a vision of a healthier, more sustainable and resilient world.
Could this be underlying Shum’s original screed on the need for change, given his employer and operating environment?
“…the impact of tribalism on design and the development of technology is unconscionable for individuals who have made creativity and innovation their life’s work. […] At least as human beings, if not as designers and educators, we must think about the consequences of renewed factionalism and tribalism in the contemporary world. Where will our students find moral purpose to guide their work? Can anyone familiar with the events of the twentieth century seriously give their trust to personal sensitivity and good intentions in matters as complex as designers face today?” (Buchanan,1994; 1998)
IMHO, we need things like an ethics course, or a discussion on values and how we manifest them in our products and product systems, even if we’re not wholly aware of them or able to articulate them. We need to question the underlying value-driven agenda of even our design processes - UCD/HCD extracts data and exploits it, while participatory design (particulary the Scandinavian tradition, see Gregory, 2003) attempted to move from the “Expert-led” approach to the “User as partner & collaborator” approach (see Sanders, 2006; 2008 - figure shown below).

I think we need more discussions on our choices of process and methodologies, the values they embed (or don’t), and conversations around the designer’s own value systems and ethical stance.
Are you ready to step out into the world to create and make products without having developed and written out your own ethical stance, similar to the way positionality statements and subjectivity statements are written for qualitative research?
That’s what I’d ask for design education for this century, imo.