This plan has been floated many, many times, most notably at the coast about 10 years ago when a member of the education faculty tried the argument that teaching was the only thing we were about. 

Who would be insane enough to accept, or get into, a position that virtually eliminated any chance for moving to a university, or for that matter to any future promotions.

There are institutions that have teaching as their only mission.  Those are the appropriate places for the faculty who wish to focus only on student interaction.