Or they could take the top 2-3 or whatever percent of kids by school and create local gifted programs that pull from small clusters of nearby schools. That way, all the bright kids in Harlem would be with other bright kids from their own neighborhoods and the tiger parents on the upper west side could compete with each other to their heart's content.

Or they could pull the top x% by income group and, again, create local programs (this idea would kill ideas to move to or get a dummy address in another neighborhood where your test prep dollars aren't competing with as many other test prep dollars).

Of course, they could also just designate more schools as gifted schools and maybe stratify by IQ results.

IMO, this problem would be solvable with some will and some creativity, but both seem to be lacking.