Frankly, I think this is a solution in search of a problem. I was working on my PhD and the poor job outlook for it was one of the reasons I quit working on my thesis. I don’t think the problem is what to do with rising cost of education and out of work PhDs, it’s that we’ve artificially inflated the demand for a college education and PhDs.
When I was in high school, I remember a constant push for college preparation, essentially with the idea that if you didn’t, you were going to fail as an adult. I think something like 95% of my class went on to get at least a 2-year degree, and well more than half got 4-years. Yet I know that it wasn’t all that long ago that this wasn’t the case.
Lots of jobs that don’t really have a good reason for a degree are now requiring them. Looking at my field, as a computer scientist, why does an entry level IT help desk or even a menial code testing job require a degree? All the documentation for the help desk types can be written by people with degrees, but they don’t need a degree to follow a step-by-step document. Same with menial coding jobs, algorithms and design, or use cases or whatever can be done by people with degrees, so they can get by with a lot less. But it seems they now require them because everyone has them anyway.
And that’s why “the invisible hand of the market” now has ridiculous costs of education. The demand is ridiculously high, because everyone thinks they need one. And, as a consequence, the way to distinguish yourself beyond that is to go get graduate degrees. So with such a ridiculously high demand, the market will continue to raise education prices and pump out unnecessary PhDs.
I’m not really sure what a better solution is, since I think it requires a social change, though technology is helping some, but I think the solution to the current situation provided by the OP will exacerbate the situation. As pointed out, there’s a lot of incorrect assumptions about the knowledge and motivation of PhDs; a lot of them are not willing or able to teach. As it is right now, degree inflation aside, a degree in X from the University of Y is more or less a known quantity, but with a solution like this, with less oversight from the university, I think it would create more variability in the value of a degree.
Yes, there are programs that work like this, where you can get credits for assisting in research, but that generally gets special oversight. And homeschooling isn’t really comparable since, at least in this state and when I was in school, those kids were still required to pass certain state issued standardized tests and their portfolios of work were scrutinized by whatever state officials.
Perhaps something like this could work to some degree with high demand courses, particularly the low level courses, but to that extent, to a large degree they already are, since many introductory courses are taught by PhD candidates and such already. So, it really just seems to me like needless complication.