But "Studenten" and "Studierende" are not exactly the same. A "Student" or "Studentin" is someone, who is enrolled in a university, "Studierende" are people how are actual studying, regardless if enrolled in a University or not. And not every "Student" is a "Studierender" at any time, sometimes, they sleep or go to a pub.
Maybe this sound constructed
It kind of does.
I'm also not entirely sure it's even correct — "Was macht Lara? Die studiert" doesn't have to mean she's literally reading a textbook right now any more than "Peter arbeitet in einer Behörde" means Peter can't be on vacation right now.
The gerund applies to a current, ongoing process, and something that takes multiple years seems to fit.
(Which is not to say I particularly like "Studierende". It feels like a compromise.)
and in most cases of the above example you could probably guess the meaning from the context. But my point is, that the language looses is subtle nuances.
It does, but it also gains something in the process.
And I suspect you wouldn't use "Studierende" in the strict sense of "they are in a lecture right this moment" very often.