If it cannot in principle be measured or observed (with past, existing or future technology) then it cannot be true.
You seem to have "true" confused with "provable". There are uncountably infinitely many true things that can never be proven with any finite or countably infinite amount of time or evidence (proved via Gödel). There either is a god or there isn't: one of those must be true, even if we never know which.
Why is that bad? Because they won't get the whole software engineer experience?
They probably don't have the needs or capital to justify that
Then take out a loan. And if they can't do that, then how are they going to pay for this new school anyway?
and a lower quality software development will do just fine..
No it won't. You cannot magically get better results by shoving more people at a problem. You'll get a bunch of shitty software that will always break and will cost you more in the long run. Would you buy a disposable car that will completely ruined after three years of constant repairs for a 30% discount? Is your time really so cheap that all the hours of being broke down on the side of the road are worth it?
Interchangeable parts won't.