Where it gets really challenging is that LLMs can take the assignment input and generate an answer that is actually more educational for the student than what they learned d in class.

That's if the LLM is right. If you don't know the material, you have no idea if what it's spitting out is correct or not. That's especially dangerous once you get to undergrad level when learning about more specialized subjects. Also, how can reading a paper be more informative than doing research and reading relevant sources? The paper is just the summary of the research.

and get a level of engagement equal to a private tutor for every student.

Eh. Even assuming it's always 100% correct, there's so much more value to talking to a knowledgeable human being about the subject. There's so much more nuance to in person conversations than speaking with an AI.

Look, again, I do think that LLMs can be great resources and should be taken advantage of. Where we disagree is that I think the point of the assignment is to gain the skills to do research, analysis, and generally think critically about the material. You seem to think that the goal is to hand something in.