Students could begin using wikis at a young age, even late elementary (fourth or fifth grade). If a teacher decides to begin using wikis with a young class, the first assignment may want to begin as in-class assignment where the teacher can walk around and actively assist the students. Older classes, Jr. high and certainly high school, can be done solely by the students with the teacher being simply a resource in case of problems.
In order to ensure that all students participate in the writing and editing of a group wiki, the teacher could avoid awarding a group grade (everyone in the group receives one grade on the overall product) but instead grade each individual student's input. Because of the software that allows a teacher to see how it is modified and who contributes, this would not be an impossible or unreasonable solution to one person or a couple students doing all the work while their peers do not contribute.
Students should definitely realize the severity of plagiarism. However, since Miss Walker did not address the situation until after the problem occurred, it was reasonable that she is allowing them to edit their work this time. If she explains why it is not allowed and gives them alternative ways to publish the information so that they are not plagiarizing, it would be expected that she is much more strict if it happens again. Giving her students a second chance this first time is acceptable, but if it happens in the future, giving a "0" on the assignment should be her course of action.
I think this is a very interesting and reasonable alternative to standard group projects/presentations. Instead of trying to get together to make a power point or something equivalent, this allows each student to be involved from a different location. Other than the plagiarism, the only other concern I have is: is it possible for someone outside the classroom to access and edit the wiki? If just anyone is able to post to the wiki, that could be dangerous and annoying. Is it possible to restrict access to the wiki to only the individual members of that wiki and the teacher?
Similar to the last paragraph, I would like to learn more about the privacy and security of a wiki. Wikipedia, for example, is a public wiki that anyone can edit (even though monitors can also remove inaccurate information). I just wonder if it is possible to keep the public out entirely to protect the students and their work from vandalism of any kind. That was not directly discussed, at least not as far as I could see.