At the education stage, it is better to optimise for core learning/theory (e.g. mathematical foundations), with a bit of practical stuff thrown in, and then as you go further along, introduce longer projects (more practical work e.g Network Programming) and at the end of the education have "enough" practical experience to make the transition to work (the majority taking this path) where you continue to build the practical experience.
Learning more theory later on is still possible but those are more like financial investments that give lower yields over longer time periods. So they are best done "early" in your personal development.
In terms of interviewing interns, just find out what they do know, and judge the best one on a balance of talent, knowledge and people skills. They will do you proud. No need to have a set expectation against specific skills unless that is the core domain they'll be working on.
Learning more theory later on is still possible but those are more like financial investments that give lower yields over longer time periods. So they are best done "early" in your personal development.
In terms of interviewing interns, just find out what they do know, and judge the best one on a balance of talent, knowledge and people skills. They will do you proud. No need to have a set expectation against specific skills unless that is the core domain they'll be working on.