getzel1:
1: Will the yeshivish schools not take Chassidish children?
2: Starting a school in someone’s home is normal, because it lowers costs. If they have the money to start in a storefront, Kol HaKavod. Both options are “tackled correctly”, but the families affected have to do it. They can’t wait back and expect others to do the work.
As a final note, both mayself & my children have been in classes with 29 children (and did not see any detriment). I believe it depends on the quality of the Rebbe.