Or the system failed by hiring him in the first place for a job he was unsuited for? Yes, I agree this was a systems issue that paired the wrong students with the wrong teacher. Maybe he should have been teaching an upper level course where the students could benefit from extra rigor or maybe he should have been release from teaching responsibility as a talented researcher.
Perhaps the system failed this person by letting too many students attend his class who lacked the requisite intellectual ability or work ethic.