Context: I taught Linear Algebra as a junior level course for a mixed audience (math, engineers, science, education) who had already had a proof technique course and all three semesters of calculus including vectors and their analytic geometry. Of course, there were always a few math-education majors whose curriculum path forbade them to have the third semester of calculus (sad, these kids may well teach highschool math in the not too distant future, we really should require the math major for high school math instruction in the USA... I digress)
I try to teach with a balanced approach because I do see the merit in what you say. But, I also know that matrices are incredible useful and are truly interesting on their own. Here is the quick break-down of the course I taught a bunch of times:
Week 1: what is the matrix ? Matrix addition, multiplication, matrix algebra, blocks and applications. I introduce all the basic component notation here and prove things like $(AB)^T=B^TA^T$. On a personal level, it gives me great joy for this reflects my personal interest in tensor calculation. Needless to say, students have mixed feelings about my exuberance for index notation. As the years went on, I find myself drifting more and more into column-based arguments. But, that is basically the take-away message notationally, to verify a matrix identity you can focus at the matrix, column or row, or component level. Each viewpoint has its merits.
Week 2: Gaussian elimination and elementary matrices. I spend a day on row-reduction, a day on intepreting solution sets and a day on how row reductions can be implemented by left multiplication of an elementary matrix. I might slip an application in here somewhere. I do not attempt to "prove" the uniqueness, but I do emphasize the ideas of forward and backwards pass. If I had more time, I'd work LU-decomposition in here. In contrast to Week 1, almost everything here is a matrix or column level notation.
Week 3: Inverse matrices, spanning, linear independence and the Column Correspondance Property (CCP). There is a good chunk of theoretical matrix algebra to cover here. I try to prove why left inverse implies right inverse in this context. The many equivalent characterizations of invertibility give a nice theorem to continue adding to as other ideas come in later. If I did Week 2 correctly, I've already showed them how to solve multiple systems with the same coefficient matrix so the usual magic trick for calculation the inverse is easily understood. Spanning and LI are new ideas, but the matrix calculations are the same we've been doing. Notice I focus attention here just on column matrix spanning and LI. The abstract version comes later.
Week 4: Determinants motivated from volume. Laplace Expansion by minors and usual calculation tricks. Application to eigenvectors introduced (I have maybe one homework question on eigenvectors here just to prime the pump for later). Then, Week 4 ends with Quiz 1 and time for questions about the homework solutions which I provided.
Week 5: Classroom interaction! (Test 1). Then we move on to abstract vector space definition and examples galore, subspace test and the theory of spanning and LI for abstract vector space. Many of my examples of abstract vector spaces are based on matrices. It's good they have lots of experience and we've already introduced the language to handle them efficiently $A = \sum_{i,j} A_{ij}E_{ij}$ etc. I introduce functions of vector spaces as an example of vector spaces. If you wish, I've introduced linear transformations here.
Week 6: bases and coordinate maps, theory of dimension, linear transformations and their subspaces. I've tried various approaches over the years here. However, usually I use an argument which boils down to calculating the trace and using $tr(I_n)=n$ as well as $tr(CD)=tr(DC)$ to prove the number of elements in a basis is unique. There are many ways to get at this, and I always regret whatever I do since we could spend so much more time here to really get into all the methods. Also, by the end of the week I'm feeling guilty about all the properties of linear transformations I've forgotten to prove.
Week 7: On restriction, extension and isomorphism. I try to impress on them how amazing it is to define a map on an infinity of points by its values on a handful of inputs. Linearity is hugely simplifying. The concept of defining a linear map by linear extension off a basis is introduced and used to formulate various isomorphisms. Then we return to linear transformations and introduce the concept of the matrix of a linear transformation. I typically spend a day showing how to calculate this in abstract case.
Week 8: coordinate change for vectors and transformations. I draw pictures to derive the formulas then emphasize how these things simplify in special cases like column vectors or usage of the standard basis in $\mathbb{R}^n$. I have a few truly complicated examples in my notes which I'll project without actually working out. The point of the example is to share the motivation for the study: coordinate change allows us to find the most beautiful formulation of a given linear transformation. (incidentally, I think the under-emphasis of linear transformations in some curricula make coordinate change even harder to understand, even so, this is a difficult topic for most kids)
Week 9: quotient vector space and the first isomorphism theorem, direct sum decompositions. (I try to prove things about cosets carefully and just sketch the idea of the direct sum and how invariant subspaces make the matrices nice). The depth of this week depends on the particular audience. I also try to take some time to contrast concept of null space for a matrix vs. kernel of a linear transformation. The coordinate maps are isomorphisms which transfer us between these various worlds.
Spring Break
Week 10: Quiz 2 and Test 2, then the end of week we introduce Eigenvectors. Throughout the discussion of Eigenvectors I bounce back and forth between the e-vector of a matrix vs. e-vector of a linear transformation.
Week 11: Eigenvectors continued, Jordan form. I don't prove everything here, although I do try to prove LI results about eigenvectors. I'll introduce notation for Jordan form and give examples, but I'm not going to show algorithmically how to find the basis nor prove its existence. Then I spend a day on complexification of a real vector space along with the concept of a complex eigenvector.
Week 12: continuing from complexification we get the so-called Real Jordan Form which is what is actually needed to understand applications. Then, the rest of the week we dive into Inner Product Spaces and Euclidean Geometry. I try to spend a little time here talking about the various choices we have for norms and how the "circle" can be a square or diamond.
Week 13: beauty of orthonormal bases, GS-algorithm, closest vector problem and orthogonal subspace theorems, application to least squares.
Week 14: orthonormal diagonalization and the Spectral Theorem, sometimes I get into the proof of the Spectral Theorem, it depends how tired I am at this point.
Week 15: application to real quadratic forms, application to calculus of many variables. Matrix exponential and solution to system of DEqns leveraging all we know about e-vectors, complex e-vectors and the real Jordan form.
Week 16: multilinear algebra. Ok, I probably should cover the Singular Value Decomposition here, or the QR decomposition or something else. But, I should be allowed to have fun at least one week in a semester, right ?
In summary, I think your idea for teaching the course is fine, but you will still need to teach the matrix calculations somewhere because they come up in examples.
In any event, we should all teach from the heart. So, take your own advice before any of ours.
Comment following initial post on 5-18-2020 by Kostya:
...you start by introducing matrix multiplication, transposed matriced etc., by just imposing a set of formal rules upon students; then, presumably, drill the students on those rules... What is the pedagogical benefit of that? If you need to teach both matrix multiplication (which looks technical and poorly motivated to the beginner) and composition of linear maps (which is natural and very easy to motivate), why not first do the latter and then the former?
The pedagogical benefit of introducing notation is that it gives me a language which allows me to efficiently and smoothly communicate general examples. Matrix multiplication gives me a way to convert a system of linear equations into a single matrix equation. There is motivation from that alone for the matrix-column multiplication. hen, going beyond matrix-column vector products,
$$ Ax_1=b_1, Ax_2=b_2 , \dots , Ax_s = b_s \Leftrightarrow A[x_1|x_2|\cdots|x_s]=[b_1|b_s|\cdots |b_s] $$
So, thinking about multiple systems of equations with the same coefficient matrix naturally leads to the concept of matrix multiplication.
To be honest, I don't motivate matrix multiplication when I define it. I just put it out there and start showing how it works. I take a more pragmatic approach, I do tell them that the initial definition is made so that matrix multiplication will fit with composition of linear maps. But, that is just a comment. I circle back to it later and show it explicitly once we later introduce linear maps. Then I circle back again later still and show it still makes sense with the extra baggage of coordinates ($T: V_{\beta} \rightarrow W_{\delta}$ and $S: W_{\delta} \rightarrow U_{\gamma}$ where $[T]_{\beta, \delta}$ and $[S]_{\delta, \gamma}$ gives $[S \circ T]_{\beta, \gamma} = [T]_{\beta, \delta}[S]_{\delta, \gamma}$)
So, yes, I do think students should be made aware that matrix multiplication can be defined by the necessity of adhering to the mechanics of function composition. But, on the other hand, I don't want to be talking about function composition while I'm focused on how to solve equations and interpret their solution sets.
Also, initially, I do want to share some enthusiasm for how we can use matrices to construct other objects. For example, typically I have them study the product of matrices of the form $\left[ \begin{array}{cc} a & -b \\ b & a \end{array} \right]$. Connecting that matrix with corresponding linear map would require much greater sophistication at this point in the discussion.