The rubric should accompany the paper when a student receives it back with an evaluation. I wouldn't suggest this kind of evaluation for every paper though. I think this kind of evaluation would show the student that to some degree mechanics are important. Journals and in-class essays are the only place where grammar can be overlooked, but the content has to be consistently considered of value. These assignments should be a place for students to demonstrate content ability without worrying too much about mechanics.
Instructors can also provide students with feedback when conferencing with students.
It's all about balance, I think. That's why marking every error shows the student that you know the right answer. It doesn't guarantee that the student will know how to fix the error for herself next time, or that she understands why it was wrong in the first place. This is all such a messy business. I'm hoping the assessment course will shed more light on this aspect of teaching writing.