VFR,
I can see the point you make about basic IF perhaps instilling unwarranted confidence, but in practise I don't think this is the case.
It is my experience when teaching basic IF that the student actually develops a very healthy respect for the difficulties involved, and comes away with a stronger than ever conviction to stay away from cloud.
I always include some hood time when conducting LPCs, not to assess the candidates IF ability but to reinforce the point that they can't do it well enough to save their life.
I find that almost without exception they can't, and they come away with their conviction renewed - my parting words are usually along the lines of 'if you're in doubt, then there is no doubt - you shouldn't be there'.
Seems to work for me.