I do something similar to this quite often. I teach game development, and shortly after the class begins, I start letting the students shape things. It has to still be in a target that I feel comfortable with, and that I feel won't overwhelm the students. But the idea is that I have a key set of topics that I want to get across, and then based on the type of game or program they want to make (as a majority interest), I'll cover the topics but shaped for their project.
Another thing is Free Project Time. Senior students are expected to help the junior students, and they work together to build their own project. Using a similar approach to agile, the figure out the smallest thing they can build to get it started. Perhaps it starts with a window with a logo image on it., then the next one is with a player ship that moves with the arrow keys. and so on. As the teacher, I go from group to group, assisting, and evaluating their plans. Some times they bite off more than I think they can chew, so I have them split up their next goal into a smaller amount of work.
There are more variations to what I'm talking about, but perhaps you could explain a little further about what you are looking for?
Please feel free to check out the link below for something that I've been working on that might be of interest to you based on your question.