Yes 100% agree. There are instructors and some schools already working on this but it's an uphill battle.
The JAA had a great chance back in 1999 to make the theory system/exams much more relevant but like anything out of Europe it's a compromise committee, hence the current shambles.
The 'database' has become a joke and is not serving the industry. It might even be giving some students the false hope they can become commercial pilots by rote learning the answers. Whereas in New Zealand for example the ATPL flight planning exam is a combined FP/Perf/M&B using the B777 data manuals for a flight across the Pacific - much more relevant and difficult.
Though the old CAA system wasn't brilliant you certainly had to know your stuff to pass and at least the air law was relevant to a pilot. The only good thing to occur recently is the electronic exams with quicker results.