I also teach kids to fish, although with a less sophisticated rig than this, and I actually think fly-fishing would be more fun for most of them because you get to DO THINGS instead of just dropping a hook and waiting. However you need a lot of empty space for fly-fishing, and that is what really makes it an activity for the elites rather than the masses.

To your point, rare is the kid who would find it fun to drop a hook and sit waiting for hours.