I think you can control Yun with less heavier solutions. If you are using labview just as a GUI, then it is an overkill IMO.
Yes, there are more efficient ways of doing things. But teaching scenarios often introduce artificial constraints in order to introduce new concepts. Simply controlling the output of a Yun using Labview is overkill, but I'm guessing it's an early baby step towards introducing more complex control scenarios.
Labview was widely used in the valley (Silicon Valley) for some time until Network engineers decided it was an overkill.
I just don't see network engineers being a target market for Labview, it's no wonder they don't use it.
The prime market I see for it is in a laboratory setup where a chemist/technician/engineer wants to hook up a bunch of lab instruments to a computer, remotely control them, and collect data from them. That may not be the most efficient way, but it's a way to accomplish the task without having to learn a programming language, having to figure out how to talk to all of the different instruments, or figure out a complex API for each machine. Just load up the drivers that provide a high level abstraction of each instrument and connect it all together with the graphical programming environment. I see it as the laboratory equivalent of a PLC: it's used to connect and automate a bunch of test instruments in a similar way as a PLC would be used to control a bunch of industrial machines.
You're right in that I just don't see it being used for networking control or analysis. But I do see it controlling lab equipment, and I do see the OP's project as a first step to integrating an arbitrary machine into such an environment (if only as a learning experience.) Sure there are different ways to do it, and Labview wouldn't be my first choice either, but you aren't going to get good grades in a class if you don't do the assignment as instructed. I remember an early algorithms class where I had to write a program to do a Gauss-Jordan reduction in FORTRAN, thinking that it's silly because I could do it in one operator using APL: while that would've been much more efficient, it would've given me failing grade in that FORTRAN algorithm assignment!