Personally I think, overall, the engineering schools are a good idea if (and only if) the student themselves approach it with the right frame of mind. The student should be aware that he/she will still start their career the bottom rung.
One of the more apparent pros of these schools is that it lets students get a broad sense of high end equipment and how is is applied. If someone has at least a grasp of the tools and the flow of a session (and is man/woman enough to know that no one gives a damn about their opinion at this juncture in their career), I see no reason why they wouldn't be an asset to most studios.
The knock I have on these schools is that they seem to teach arrogance. I know of one school that told students that they should be able to go to any studio and assist any session after graduating. This statement is ridiculous and is probably one of the reasons most current engineers/producers/studio managers have a problem with recording school grads.
I'll use Han's analogy of the painter/artist... Recording schools are like a painting school that teaches you what the brushes are, how to prep the canvases for the painter, how to tell the water colors and the oils apart, who was the most famous neo-classicalist, etc... If a student is too dumb to figure out how to apply this knowledge into a work scenerio then they will fall by the wayside.