That's why I'm trying to come to this differently. I am trying to unpack aspects of game design that are aesthetic, as opposed to going pure game development.
The course outline you provided doesn't suggest that to me at all. What you are proposing is a game design and production course, not a game art and aesthetics course. It may help if you clarify what you mean by "aesthetic," because I'm not sure we're all on the same page there.
Right. So I am trying to figure out how to teach art THROUGH game design.
Again, a terminology clarification is needed. What do you think "design" means in the context of video games, exactly? The definition I use doesn't have a whole lot to do with digital art production...
I am trying to find that fine line where I can be teaching what amounts to a Digital Arts class with the minimum of game stuff but have it still qualify as a game design class where kids make video games.
Honestly, I would say that "digital arts" are kind of a tangential field to game design. In fact a lot of the time game designers are not themselves artists. Visual art is just a part of how a game design is presented to players. A part of its "identity", sure, but only a part. Teaching production and design and somehow expecting to teach art that way is unlikely to work as you intend it to.
Just because the work of game artists is immediately obvious from looking at screenshots of games doesn't mean game design has much to do with art - as you would know, if you played video games yourself. Hence my suggestion to immerse yourself in them before undertaking this. :)