I found it interesting that you demonize the general nature of our schools and yet you yourself admit in the above paragraph that in the end, it isn't the school's fault per se - it's the simple inescapable fact that the US* just doesn't value education as much as we should.
I don't find it surprising that our school system is based on one meant for factory workers. Factory work is meant to streamline a process at minimal cost to maximize profit. There's a reason why the assembly line had such a powerful impact in its time. Again, you mentioned that schools are not receiving the funding that they need to teach the next generation of young adults. With limited funding, can you really afford this "better education"
for everyone? No. Standardized education has a lot of problems but it's silly to blame schools when they have no other choice.
I think your attack on the UC system and the College Board is a bit naive, honestly.
Every institution - not just the schools in the UC system, not just the ones in the United States that prescribe to the College Board's method of testing - has standards and they need them. There is limited space in any given institution. If you're a student with a 2.0 GPA and absolutely no work ethic, why should you take the spot of a diligent student with a 4.5? A company has limited hiring spots. Why should they hire someone who dropped out of high school with no experience, over someone who actually has experience in the industry and graduated at the top of their class from so-and-so university? If you're getting crushed by being told that you're not good enough by universities, you might be in for a surprise when you need to join the work force.
Don't get me wrong - I dislike standardized education as much as the next fellow. But not when it's being attacked for all the wrong reasons.
*The UC and College Board system was brought up, so I'm limiting my already-limited observations to the United States - plus I don't know jack about how education is handled in different countries.