I'm guessing you live in Canada based on your username. Why do you feel they can't adapt? After all they're government controlled and we are in principle the government. (Democratic countries of course) Public schools produced a well educated population in the past. I'm not convinced that it can't do it again given some reform efforts. Many people rely on public schools and a democracy relies on a well educated and discerning population. They're mutually reinforcing elements of a strong civil society.
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So many people have tried to change the public schools, and it just hasn't worked. Meanwhile their children suffer in the schools while the parents fight for change.
Public programs tend to be run badly.
I think that the only thing that might change public schools is if enough people leave the system, either to homeschool or by choosing private schools instead. If enough people do that they just maybe they will start to realize that they can't continue to be as terrible as they are because they are losing their 'customers.'