Agreed. I'm taking a class right now with the dragon book (taught by Aho, actually - one of the authors of the book), and it's easily the best and most important CS class I've taken[1]. The main project for the class is to design a language and write a working compiler/interpreter for it - in all the years he's taught the class, apparently no group has failed to do this. The really tricky part is making a language that other students in your class will
want to use, though, and that goes beyond the 'simple' issue of compiler structure!
I half-wish that there would be a way to teach a compilers class as the second class in a CS track (ie, right after the intro class), but the problem is that it just requires too much familiarity with the details in order to impose upon most beginner/intermediate students, even if a few really interested ones could potentially handle it.
It might be easier if you started off with Scheme and then went from there (a la SICP), but even then, you'd miss a lot of the more fundamental concepts assumed in the Dragon book that really just need a lot of time to be digested.
[1] Alright, there's probably a three-way tie for 1st, but it still counts. My education would not have been complete without it; I highly recommend the Dragon book to anybody who has the time and interest.