While I think that a simplified synopsis of the plays could be helpful to schoolchildren in studying them, I would say that it would have to be used alongside the regular text. The most satisfying thing for me about Shakespeare is the wonderful use of language, and you wouldn't be able to get that from a modern 'translation'.
Edit-I looked for an article about this, but the only one I could find came from The Daily Mail, which has a tendency to be somewhat...melodramatic about things like this.
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Their problem seems to be with revision guides, which are quite obviously, despite the Mail's attempt to misrepresent it, supposed to be used in conjunction with a regular text. In any case, it's a commercial publication-schools don't have to buy them, and they're not set texts.
What a non-issue.
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