There’s a third option that isn’t mentioned here, which is providing better training, support, and experiences for Ph.D. students in teaching. If the majority of universities are teaching focused (which I agree they are) then preparation for a career in academia has to include significant doses of training and practice with effective classroom teaching. Currently the number of programs that provide this is vanishingly small and everyone in academia knows it. I’d say to improve the viability of academic career tracks for Ph.D.’s, start there.

On the flip side we who are actually in academia have to do a better job of valuing and rewarding good teaching and make it a priority for tenure and promotion and salary, not the ugly stepsister of research.