The skills you need for programming competitions are in my opinion quite different from the skills that you need for a "typical" programming job. Programming competitions "usually" mean hacking together a barely working program using ugly tricks that any project manager would strongly frown upon. Also one does not care about maintainability, understandability etc.
Also there a programmers (like me) who love to learn new things (such as in MOOCs), but hate the time pressure and competitiveness of programming competitions and thus never participate.
In other words: I would be very careful to hire people by looking at programming competitions.
> It was doubly difficult since they needed mostly applied classes
On the other hand: This could have been used to bring in some of the cost: If there are employers who would love to hire graduates with knowledge in CurrentHotTechnology, they could sponsor the development of courses for that.