Hi Harry,
great that you've been to Aachen! I like it, too. Especially the historic center...
Yes, we developed our LMS in-house and we are very happy with it! We changed the look and feel of SharePoint and set value on usability and simplicity. Teachers have limited setting options, because we wanted the couse sites to look similar. Otherwise it would be too confusing for students to orient themselves.
You can have a look at the demo course here: https://www2.elearning.rwth-aachen.de/ss10/10ss-30659/
Teacher-Login: ddozenti (password: ?ddozenti2007)
Student-Login: sstudiosi (password: ?sstudiosi2007)
Even though it is in German, it might give you an impression...
Teachers can also have more features, e.g. e-test (integration of the moodle assessment feature), or faculties can integrate their own developments in collaboration with us. The demo course only shows a basic toolset.