... and it's okay.
At RIT, we switched from the traditional lecture + lab approach to the "workshop" approach about six years ago. The students meet in a room with small tables and maximum class size of 42, three times a week for two hours each. The room has equipment at all the tables, so that students can quickly set up small experiments which may not take the entire 2-hour meeting.
I taught in the traditional manner for about seven years, and in this manner for an equal duration. Does the workshop have advantages? Sure: students are less likely to fall asleep because they are often working examples, and because they are in a small, well-lit room. I can walk around and talk to individual students for a minute or two at a time, so I can find those who are having problems and try to help them. It's easy to introduce a concept, give one simple example, then ask the students to do another example, within a span of 20 or 40 minutes. In some cases, this cycle of introduction - observation - action may help students to understand or remember the material.
But there are disadvantages, too: in a workshop, it's difficult to move away from the median student. I can't go too much faster or deeper, because it's clear that many students are not getting it; so some students are held back. I can't slow down for the slowest learners, either, because it becomes obvious that the majority of the class is bored. This approach is MUCH MORE EXPENSIVE than the traditional one, because we need to offer 10 or 15 sections of the class each quarter; that means a lot more faculty time. The rooms can't be used for any other classes, and the AV requirements are pretty steep -- we need to spend around $10K just on projectors each year. We need more equipment than we would have in traditional labs, and that stuff isn't cheap.
It's not clear that this approach causes students to learn any better; some are helped, some are hurt. It's difficult to compare student achievement in workshops vs. lectures, because at the same time that workshops were introduced, we changed the content of our classes as well.
My summary, after years of experience: not a silver bullet, a lot more fun to teach, more expensive overall.