Each student would get a WordPress.com blog (because I don't see the sense of abandoning a VLE to encumber yourself with the admin load of administering WordPressMU or any other centralized installation - let's put it in the cloud). This would serve as a place to submit assessments and receive feedback. Students could choose whether their blogfolio was public or only visible to instructors. The joy of RSS-everywhere in Wordpress would make large numbers of students a joy to administer.
Blackboard quizzes and other forms of data submission (usernames, etc) would be dealt with via Google forms on the Instructor's own course blog. Course materials would be published sequentially on the Instructor's course blog and support given via Twitter, Screenr.com, YouTube and Skype.
Let's do it (you know you want to).