There is a problem insofar that software engineering somewhat exists, but it's more like CS for dummies. I think it's important that it actually teaches at a high intellectual level, just about something different. Let the students write an operating system, not some typical "manageable student task" bullshit. I've had an exchange semester in Oslo where they asked their students to do just that. First exercise: bootloader in assembly, second exercise: task switcher, third exercise: virtual memory, fourth exercise: filesystem - etc. It might have been one or two weeks per exercise, not sure. I actually failed most of the later exercises due to "other priorities", but I strongly felt that they were doing it right. The exercises were of course simplified, but a bootloader is a bootloader, task switching is task switching, virtual memory is virtual memory... no flourishes and some fixed buffer sizes etc, but the basics were there.