Yitz, one question is how are school governed. When they encounter challenges – what is a control mechanism to correct them? Maybe in some closed-knit communities, there is centralized control with the Rav/Rebbe of the community getting to decide. In many cases, school is in charge on their own. This is a distinction Bava Basra makes about butchers: they are OK to have their own democratic rules unless there is T’Ch in town, then tey need to ask him to resolve disputes.
In a discussion with one school rep, he described lovingly how he went to Steipler to ask a question about his child education. When I asked him what Gadol was consulted by the school in our case, or in other such cases – he did not have an answer …
So, in cases, where there is no accepted halachik supervision, the other option is market and choices. The question is then how to increase them.