[waterheater]

I've seen the ins-and-outs of academia within an R1 research institution from about as top-level as one can while remaining a student, and my idea is based on extensive interface with the reality of academia.

Your observation that the doctoral degree system has always been that way is precisely my point: the world has changed, and new forms of training are needed to complement the paper-publishers. The PhD system is broken in part because it's catering to multiple audiences when it should regain its focus on its core mission. That being said, many people want to do research but don't want to work in academia; in fact, I think their numbers are far greater than the academia-oriented. My idea caters to those people, and I think all parties (students, schools, industry, government, the general public) will benefit in this arrangement with almost no drawbacks.

From a degree-focused perspective, it's somewhat unusual that U.S. universities almost exclusively assign PhDs, save for the professional degrees (e.g., MD, PharmD, JD). Multiple types of bachelors and masters degrees exist, and those degrees are certainly differentiated from one another. In some European countries, the ScD is a terminal degree higher than a PhD.