How far does "user experience" design extend?

Usability, user - experience design, and service design, it seems to me [correct me if you think I am wrong] have considerable overlap. I'm writing this as much for my own benefit than anything else here. Just to clarify my thoughts on this...

As you know I have been involved in design education for a significant part of my career, and I am, in the light of the amount of discussion and focus these areas of design practice attract,making connections between my original understanding of the area as being mostly concerned with user interfaces, websites, software etc. [GUI for example].

What can we say about the "usability" of design education programs? Is that important? Is developing curriculum not in fact a kind of "service design". Students being the "user"...

The service is the experience...

If one for example looks at say IDEO as a pertinent example of a practice providing a global service in this area the argument is clear. All user experiences virtual and 'real world" can benefit from innovation and design strategy that addresses usability.

Yet it is equally clear that the majority of businesses and institutional organisations are yet to even consider such a notion. It is often not even a blip on the radar. Sure, "customer service" is seen as important but the experience and the impact of design on the user - experience is out of the range of the business agenda.

I think "coherence" is an issue. For example consider the case of a large organisation that actively promotes "flexibility' as a key tenant both within the organisation, and to the consumer/client, but develops multiple computer-driven systems that exclude the possibility of flexibility in the name of "customer service". The fallout is apparent "consternation" at points where there is divergence from rigid processes that misalign with the "system".

Workplace cultures that are hostile to diversity of strategy amongst departments and workgroups risk sacrificing qualities such as flexibility, thereby losing ground in the current disruptive climate where the ability to respond quickly and intuitively is increasingly paramount.

What is the outcome for client [and in fact staff]where a service/product does not respond in ways that meet individualised needs...?