I took a short course (1 credit hour) in Java when it was new enough that there where no IDE's. IMO, limiting courses to established languages is kind of a waste.
I also did Java as my first serious programming language with no IDE...though this was in the early 00's in AP CS in HS. But it was good to get to know the basics through the most basic form of it. Javac/Java on the CLI, and a pure basic text editor.
On the bleeding edge your going to have to deal with things like semicolon placement by compilation. I am not saying writing code on a test by pencil and paper should be the normal approach, just using an IDE 100% of the time is hardly nessisarily.
I'd agree that starting with a plain old text editor is probably the best approach. Remove as much of the magic as possible when you're first getting started, and then add it in once they understand the basics.
I learned java in high school as my first language, and I struggled to get the IDE properly set up - it definitely slowed down my understanding.
