yes Rude, but benefits you describe only occur in current situation with mostly public schools and very few, and very expensive private schools.
Let me give you a sceanrio here:
All private schools, all vouchers, so on so fourth.
First item of competition: PRICE. I know you will argue till you are blue in the face that quality of education will be a detemining factor, but fact remains that right mix of MARKETING and PRICING always wins. Want an example ? Fighter Ace vs AH - look at populations between the games. Same applies to all things which are marketed.
So say we have two schools: They both have same ammount of money.
One invests in training better teachers, other hires good PR agency and does a huge campaign. It hires worst teachers to cut costs and convinces everyone in town that "we are better then the other school". Net result is that next year, the school with better teachers has to do very much the same else it will go out of business. Price war proceeds, teacher salaries get slashed. Can you say videoconference lecuture over teh internet from outsourced indian teacher ?
There are some things that are so important and unmeasurable that they shouldn't be a subject to "free market" practices:
education and healthcare.
As it stands our school system has a potential to do great, but parents and silly laws are preventing that from happening.
Opening the system up to mega corporations and CEOs crunching "number of chalks/classroom vs profit" ratios isn't going to fix the very core of the system. As long as tax payers are paying for schools - parents won't care.
The only answer is to engage parents. And the only way i see at this point to make that happend: Charge them directly.
Leave public schools, and charge parents tuition based on their kid's grades. Better grade - lower tuition.
When mommy and daddy get slapped with 3000$ a year bill because Johnny is a fricking moron and nobody paid any attention to his schoolwork, maybe they will change their approach.