One of the potential problems is the inertia of the system. Things are changing little by little, but it is very hard to make a big step forward in one shot. We can only witness those years the appearance of new technologies in teaching, although these things are available for many many times.
To me, the most important point is that one is a learner forever. As long as we stop learning, this is the beginning of the end ^^
There is some potential in the homeschool movement IF the parents are knowledgeable, open minded, and can truly point their children in the correct location.
The education system here in the U.S. has been getting worse and worse. I think it like so many things may need to collapse before people will consider replacing it with something else.
I have no definite opinion concerning homeschooling. It is good to give a complement to what is taught at 'normal' schools, but it may be complicated to replace it entirely as parents may miss some expertise about varied topics. Of course, they can learn, but this deserves time and commitment (that many do not have) :)