AviraDeArah,
I have news for you. European jewery was the same way. My hungarain grandmother had shortsleeves and went to Public school too. My grandfather went to work at like 14 and barely knew how to read gemara. yet they were super erhlich despite being “MO” although they davened in an oberlender shul.
Furthermore, 75 years ago there were plenty of yeshivas in the NYC area. And yes plenty chashuvim went to yitzchok elchanon.
I don’t know about Josephus, I mean we do know that the jews didn’t listen to chazal much during Josephus time nebach either. (look at the baryanim and all the others, then corrupt Kohen gadol etc.) But thats history. pre war Europe and the USA nobody aside for chasidim really had a thing to ask “das torah” every move. This is a new thing.
PS I don’t suggest that all this change is bad. its beautiful to be better jews. But don’t make it sound like MO is some kind of reform movement. They aren’t open orthdoxy CVS.