With one decent CS school that I am aware of, the University of Maryland used to require (until last semester or so) all CS graduates to take two lower level classes which are taught in C (with some asm). Now it is just one course. I don't know whether or not students enjoyed it, though I think it is unfortunate that they are dropping one of the two courses (actually combining both into one course.)
I think part of why there is this move away from C is some students (rightfully) complain that they may never need to explicitly use it, and Universities figure they can teach the concepts with other languages. I believe that lower level languages should be taught, but I understand why not everyone agrees with me.