To put it in concrete terms, where does GA really fit into the story of undergraduate physics (or mathematics)?
Suppose I want to teach first-semester mechanics. I can get through this fine with the usual vector notation. Vectors and dot products are intuitive when taught well (the latter just being projections), and while cross products are a little hairy, they don't play a major role in the course. There's no time for GA, and it would confuse more than illuminate in any case.
Next, I want to teach E&M. Here, I'd probably lead with the usual vector calculus notation (because even if it's ugly, it's standard and students should know it), and then follow with an explanation in terms of differential forms. [I assume this is a more theoretical, or honors, class; I might stick with vector calculus if it's more computational.] So now students know differential forms, they can do everything in a coordinate-free way and on manifolds, and they can access a significant amount of standard physics and mathematics literature.
Having proceeded in this way, what does introducing GA do except suck up a lot of class time? To me, it seems clunky and without any distinctive advantages.
Another question to think about: if this notation system is so good, why don't working mathematicians or physicists actually use it? For example, people thought Feynman diagrams were strange at first, but they proved their value and consequently caught on.
Again, my argument is that this is not some revolutionary esoteric knowledge, it's well-understood stuff that people don't teach for good reasons.