Block teaching is the method you're referring to. Not every school does it, but many do. I do not care for it for precisely the reasons you mentioned above. I think that block teaching can be effective for a student who is already an advanced practitioner of other, similar arts, but for a beginner it is a disservice.Perhaps, if the instructor teaches you them, in a easy to learn manner. What I have found is that more often than not, when you start at a school, even in the basics class, you never start at the beginning, you start somewhere's in the middle of the class, and so you miss out on the basic stuff the other students have already learned and are moving on, so you end up having to play catch up.
This missing out on the basics means that the student never really knows where they are in the course. Generally, by the time they are finally taught the basics, they have picked up bad habits that will need additional training to get rid of, training that they will likely not receive until the habit is so ingrained that it actually prevents the student from executing the more advanced material which requires solid basics to build upon.
I've sat in on classes at enough schools where the training was so bad that the student was literally better off learning from a well thought out and well produced video/distance learning class; they may actually get a better grip on the basics and not be out so much cash.
Daniel