There comes a point when an institution becomes so badly broken that the only rational course of action is to get the hell out, and look elsewhere for a solution to your problems. It looks pretty clear from this article that the US school system is well past that point.
I hold the opinion that the proper training and education of one's offspring should be a foremost life goal, and that delegating it to the state because "it's easier", "I don't have the time", etc. is an abhorrent cop-out. The state likes this because it gives them an outlet which can be used to program 99% of the rising generation, but I see it as a serious and negligent discharge of fundamental parental responsibility. Please note that "education" means ensuring children learn correct principles -- it doesn't represent any specific extant construct or abstraction, like "high school" or "university graduation". For far too long these have been mechanisms of control. I say this as a successful high school dropout who has never enrolled in post-secondary courses.
The things mentioned in this article are utterly absurd, and as you noted, the fact that people allow their children to go through this for meaningless rewards is really weird. Does an "A" still hold that much sway? I long for the day when it will be recognized at its true worth, which is zero.