By all means, do so. I thank everyone for their comments and suggestions. To clarify, I do follow BSA National policy, the Guide to Safe Scouting, etc. to the letter. I learned a long time ago in the Corps, that if you just do what's in black and white, you won't get into trouble, even if it doesn't make any sense whatsoever. The survival exercise isn't intended to be a "nuts and berries" weekend. It will be the final exercise which will bring together all of the classroom time and one-day hands-on training into one package, where the Scouts can actually use what they've learned and figure out what does and doesn't work for them. You know how it goes: I suck at starting a fire with true flint and steel. I can get a fire going in a heartbeat with a metal match (firesteel). As far as knives, I'm going to use a previous suggestion of comparing a sheath knife (one of my Moras) to a steak knife. This weekend I'm going to fab a duct tape sheath for a steak knife. During my "The Cutting Edge" presentation, I'm going to present it to the Scouts and parents. It'll be interesting to see the naysayers reaction when I tell them it's a common steak knife that they let their sons use 2-3 times a week, with no complaints.
Most of the parents that go on the outings are trained, and hold various adult leader positions in the troop. There is, however, a lack of outdoor experience amongst them. One Dad told me, and I completely understand and respect him for this, that because he grew up in a big city, attending Scouts with his son was his opportunity to learn things he never had a chance to learn. Now he and his son have something in common and their relationship, where once strained, has grown substantially closer. I can't complain about that.
Everything taught during Survival 101 will be tied in to the various applicable merit badges, so that will be additional incentive for the Scouts. I've also taken it upon myself to purchase a few rewards for the Scouts that do the best at, say, shelter building, or are the fastest at getting a fire going, etc. as even more incentive. A couple of Moras and a Camelbak daypack. We'll see how the Moras go over. If not I'll think of something else.