I think you’re still going to alienate teachers with that kind of shuffling. People form relationships with their colleagues. This is especially the case at universities where your coworker may be one of a handful of people on the planet who actually understands your research.

But also I think you may overrate the impact of teaching skill on student outcomes. Universities barely teach their students at all. Apart from lectures, they assign course work and conduct examinations. By far the majority of learning in university takes place alone, when the student engages with the course work. It’s often the case that students will pass a course with a decent grade having never attended a single lecture.

The truth of the matter is that most of the value of a highly selective university is the selectivity. There’s nothing that makes a teacher look brilliant more than having brilliant students. The top schools like Harvard could honestly eliminate lectures entirely, just keeping coursework and examinations, and their students would still be the most sought after.