If you haven't read "ThThe Element: How Finding Your Passion Changes Everything by Ph.D., Ken Robinson and Lou Aronica (Hardcover - Jan 8, 2009)e Element" you may find it helpful/interesting.
I read it whilst you lot were debating all this out here! It's got some neat anecdotes of famous people like Paul McCartney etc. and how they found their true "element" despite hating school. Paul apparently hated music class and you wouldn't have known he or John had any musical talent if you'd observed them in school.
It also contains a neat section on testing and how the IQ tests were originally created out of the Eugenics program (which eventually led to all the nasty stuff in WWII). Kind of makes one see exactly how daft all this testing thing really is - especially in the US - though they are pretty much obessessing everywhere about these days.
I'm not sure even the middle ground stands to really gain from more government run education/interference. Who made them the expert at education?
I've found Lisa Van Damme's work really helpful in regards to figuring out how to motivate all children, educate children properly - ....
Everything leads me back to the conclusion that the Laura Ingalls Wilder / Little House on the Prarie village type school / home school or small private schools like Lisa's - are the way to go. You'd need a graet many of them - and a lot of really great teachers - but they could be tailored to the needs of individuals.
The way they approach education right now - as "The Element" states well - is an outdated, industrialized, factory - one size fits all method!
The largest minority, is the individual.