There are some instructors who get their people in mid water right from the start. I am not one of them, in part because I have been traditionally very limited by the shop where I worked in terms of the equipment and weights I could use. The other reason is that the start of the class is in the shallow end of the pool, and there is barely enough room for the student to be in mid water. For the first dive in the shallow end of the pool, I have the students lie down on the bottom and put just enough in the BCD so that they rise and fall gently when they inhale and exhale. Their legs or fin tips gently touch the floor, spread comfortably apart. Since I have them pretty close to correct weighting at this point (the true weight check comes later), they don't need much air in the BCD at all. It is important that they be in horizontal trim to the greatest degree possible, so I do not want them in a 45° angle at all. Anyone can do this--it is, in fact, easier then getting them to kneel properly.
Once in that position, the skills go oh-so-much-more-easily. Think, for example, of the reach method for regulator recovery. On the knees, the students are actually tipped backwards a little so they don't fall on their faces. The tank is pulled down and away by gravity. Most cannot reach the regulator, so we end up adding a step that is not necessary in real life--reaching back with the left hand to lift the bottom of the tank so the top gets close enough to reach. When the diver is horizontal instead, gravity puts the top of the tank by the student's neck, and the regulator hose lies right behind the ear, in easy reach for anyone. The skill is completely with ease. All of those first skills are easier and more like real diving in that position.
Once we reach the deep end of the pool, we do all skills in mid water. One of the reasons the whole session does not take as long is that traditionally the most time consuming parts are the later buoyancy exercises. When students have been neutrally buoyant from the start, they get those done much more quickly.
Fortunately, the pool we rent (2 nights back to back with 3-hour pool sessions), there is more than enough room at the shallow end (about 4 feet of depth) for even a large class (more than one instructor). Weights can be an issue, so I bought off ebay 10 1-lb weights and 10 2-lb weights (for about $100) that can go onto a belt (I bought some inexpensive plastic buckles off DGX and bought some 2" webbing from a local fabric store). There are some weight belts with pouches, but not enough to go around. Some people, especially if they bring their own wetsuit to the pool, need the weight belts with permanent soft pouches attached (6, 8, 10, 12, and 16 lb'ers). So I think I have proper weighting down for a class of 8 with 2 instructors. So logistically, because I can go mid water from the beginning, I do so. And I'm happy with the improved results.