Any way you look at it, the families lose. A large class means children aren’t getting proper attention/ support. A high tuition isn’t compatible with most family incomes. Yes, a school is a business, but it should be run to support the children’s needs.
The unpopular but sensible answer is to model a yeshiva after your local public school system. I don’t know everything about public schools, but I know they contain something like 500-2000 kids each, and each in a central location. If schools could find a way to cooperate (and a large enough building), the solution to the problem is combining several schools into 1 building. Many public schools have 4-6 wings for different grades and a central cafeteria/ gym/ library. If 4-6 smaller schools each rented 1 wing (each with their own administration / classrooms, but then took turns on using the gym and cafeteria), they could save a lot on rental costs. A few less buses would roll through town, because they would each be going to 1 building instead of 4. Tuition is lower, gridlock is lessened, families are better off.
Either way, whether the answer is quality or enrollment, something needs to be done soon. There are constantly houses going up, children ready to start school, and no place to educate them. We need to slow the growth and plan for our children’s needs.