Hi theveveteenrabbit
(great name & story!)
Just a parent, but yes I suggested it for our school (my brother is using it where he teaches) as a way of saving paperwork for 'merit point' system and they're running trials in both my DDs class. Class dojo seems really flexible - it can be about individual behavior but it also can be used in a whole class (whole group) way. So far, teachers & kids seem to be enjoying it - but it is a novelty still.
Like any tool it is only as creative and useful as the person using it is willing to make it.
Class dojo can send messages to parents - so they are using it with a SEN student to let the DCs mother know if DC is having a good or bad day (because mother is very concerned and with new job can't always be there after school). They are also using it to record when there are issues - as it seems to be linked to certain situations.
It can be used with whole class before starting a unit - they can agree good and bad behaviors/ outcomes/ etc... - and then understand that the behavior of the whole group results in a reward.
This was used very effectively on a field trip - good behaviors agreed in advance with children included - keeping with partner, telling an adult if you were leaving the group (i.e. to go to the loo), listening to anyone speaking to the group. Bad behaviours - were not listening, running about, not following instructions, not settling into task, talking whilst others were speaking, etc... Children helped make the list with teacher. The reward at the end of the day if they made 90% or above good behavior was an ice cream (and a non-dairy sweet for the dairy allergy folks) for everybody. They achieved 98% as a group - the teacher said BEST FIELD TRIP EVER!
DD2s class has a real problem with asking/ answering questions as a group - so at the moment they're using it to give points to children who ask questions during lessons (especially during carpet time) and for answering questions (with bonus point for giving it a go, even if they're unsure they're right). It's really helping to get the quiet ones to join in.
I think ultimately you can earn enough points to alter your monster (each child is assigned a monster character) - so if you don't like your monster or want to improve it you can. They can send reports to parents - but so far the school aren't using this facility yet - but they are considering using it for the merit point system (which previously involved signing off grid squares on a card for each child) - Teachers find it much quicker to just give points on their phone/ computer during the day and it tallies them and results can be printed as and when needed (for assemblies).
Anyway - I thought I would say that if used to encourage and explain what positive behaviors a teacher is looking for - children can understand what is expected from them and it makes it easier to achieve that as an individual or a group.
If you search on google videos there's tons out there on it (especially from US) and how it's being used - may help clarify things for you.
HTH