The format you describe is at the basis of much standard corporate leadership training. I have participated in and led a number of such sessions, it is a lot of fun and can be very illuminating as well.

For example, trying to accomplish a physical task requiring puzzle-solving and geometry while blindfolded, when the task requires coordination among physically distant parties who must pass verbal messages...it's fun and challenging and has some significant analogies to working w/ people remotely.

I totally agree that experiential learning sticks much better than "updating by hearing". Our ears are not good inputs for updating!