There is at least one public school, that I know that is doing Portfolio plus Interviews as a cut off as opposed to just tests. In fact that program has no stated cut offs, it is more interested in how does the student present themselves both verbally as well as on paper.

This method, I do think is helpful to both parents who can not afford extensive testing, or for kids that dont test well. In that school, they do have, for the bulk of their courses, a very individualized curriculum. However that school is very much as it stands in the minority in its philosophy. In terms of $$$ and cents, I am guessing this school is cheaper to run that many gifted education programs.