It's an awesome idea. If they really put the appropriate resources behind the program, it will be a huge benefit to medical systems everywhere.
I'm into my second year now, and have come to the conclusion that the 1 year is a waste anyway, if you're a science major. 4 years is excessive, inefficient and annoyingly slow. I'm studying cardiology right now, and I've had so many repeat lectures on congenital hrt. ds. I can't believe it. Plumbing school takes 2 months, law school takes 4 + 3 years. It makes no sense that medical school is so much longer: 4 + 4 + 3-7. The only people who benefit from the unbelievable length are the schools we pay.
One day I will make money, lots of money, from people who are the often weakest in society. It should be the other way around. So, the less debt I have after school, the more I can do for people who have no money. But the amount of debt a medical student has after school makes the majority of us DEMAND high salaries so we can break even and maybe own a house one day.
The 3rd and 4th years need to be done in a teaching hospital, and probably consoloidated (the last half of 4th year, I've heard, mostly consists of traveling, paying tuition, and maybe doing a clinical elective if you're ambitious. The 1st two years should be consolidated too. They could be done more cheaply, and much more efficiently. A web-based program would allow all of this for much less.
I think it's a great idea that has the potential to help medical schools worldwide (and not just in the third world) improve their curriculums. As far as I understand, it sounds a lot like the direction many US schools are moving towards, incorporating interactive learning and intergrated cases to teach the basic and clinical sciences. If students spend 30% of their time in the clinic/hospital during their first two years, they will have significantly more patient contact than most US students.