That's an excellent post BPF, just one thing I add to your list and that is a completion standard for an exercise. A stated completion standard is in the preflight briefing so the student can make a decision on how he/she feels about the exercise just completed(and included in the exercise handout which includes the homework). Eg. have I gone away from this exercise and learnt the salient points and am I ready to progress to the next exercise. In this way BOTH instructor and student manage progress not just the instructor.
I think the 5 hour idea is great, we have a 12 hour requirement to see how solo(or not) is progressing.