Sad. But I don't like either approach. One teacher wants to get rid of Shakespeare entirely (and apparently focus on minority writers as though white people don't exist) and the counterpoint wants to "modernize" it. The truth is that both are the wrong answer. Leave it alone and if no one understands it, then leave it for higher classes. Part of Shakespeare is the language, when modernized all the puns and plays on words and the iambic pentameter and all that go away. The intent of the story will come through better, but that's only part of the point. It's putting Shakespeare on life support.
In light of that, I think they should simply stop teaching it altogether in high school. We've moved too far past him in time linguistically and even modern productions of his stories use received pronunciation instead of his original accent which means we've misunderstood Shakespeare for the last two hundred years anyway. If you see the rare one using his reconstructed 16th century London accent, everything changes. The whole tone and character becomes something very different and the haughty play people get all pissy because Richard III suddenly sounds like a pirate. But if you want to catch his puns and plays on words, it's the only way.
Reading things you only have to deal with translation. Many of I guess one could argue that everything should be read in the original language but, aside from more advanced schools or scholars, ancient Greek, and now even Latin, is not taught in most schools, and even, French, German, etc especially in their older forms. More modern, Engish- say JKV Bible or Shakespeare is hard for most. So we would have to throw out a lot of canon if all had to be done "as original."
Sure, some nuance, "inside jokes", puns, political satire, rhyme, etc can often be lost in translation but the overall plot, themes, etc can still be kept and often good literature or plays meaning comes with age, re-reading, etc. Heck, happens even today like the Simpsons. A little kid can laugh at the slap-stick the adult can appreciate some satire, the mathematician can laugh at something on the blackboard, etc. Yes, I am using the Simpsons as an argument for the traditional Western Canon in education.
ps: sort of interesting, though I am fairly suspect of putting accents, (and mental conditions, sexual peccadilloes, motivations, etc) to historical figures centuries after the fact using new, modern values/ideas unless clearly supported by serious evidence from that time.http://www.le.ac.uk/richardiii/science/facevoice.html