It is a bit hard for me to comment. I am not good at instructing groups and you have had some really good comments already.

I just wonder if trying to put them through a survival scenario is the only way to go?
It should be an "enjoyable learning experience" for them.

Maybe the younger ones can learn how to pitch their own tents and lay out their sleeping bags with insulation underneath their ground sheets and the older kids who are allowed knives can build demonstration shelters.
The younger ones can likely help them quite well, even if they can't cut string or brush they can certainly tie it on.
Everybody gets to learn, everybody gets to participate. Some get to teach a bit and they all learn to work together on something.

By the way, if they can't have knives you might be surprised what they can cut with small pruning saws and shears or even good scissors.

Also, I don't know what it is like for your troop, but I have seen a lot of things in schools get cut from programs because of the problems with insurance and liability.
If any of the little darlings get hurt the insurance is likely liable, and the insurance companies will put the liability on you if they can, rather than pay damages themselves.
So it is not always just overprotective parents, it is lawyers too.