Interesting, but I've got one question... maybe I missed something, but I'll ask anyway.
I'm not really sure if I subscribe to the under-banking tendency in shallow turns. The text mentions dihedral, which most small trainers have to a certain degree, trying to raise the lower wing. Isn't the dihedral's contribution to lateral stability based on that we have a sideslip? If we stay coordinated we don't have a sideslip, thus nothing that tries to raise the low wing??
From my experience in C172 you need a bit opposite aileron in normal turn (30 deg AoB)... or the turn will develop into something steeper.
The rest of it agree with completely. I typically cover up the instruments from the very first flight and keep them covered until the students can find proper attitudes and use cues to maintain those attitudes.