Short of assigning cities to people via lottery, there is no way to make schools equal. Good schools are made by having good people (students, parents) and good people will pay a premium to be among other good people.

The fairness depends on what "fair" means. You seem to think it would be fair for the people who create good schools (primarily by providing good students) to get stuck with mediocre schools. They put in all the extra value, but get nothing much in return. That doesn't seem fair to me.

The mortgage interest on a million dollar home is more than private school tuition.

Many families buying these homes have several children. Property tax scales only loosely with family size, but tuition is typically linear.

Perhaps. Seems like the interest on an 800K loan would be about 30K in the first year, which is less then private school tuition around here. But you can't really compare the full amount as you've got to live somewhere, and you get a tax deduction as well.

And once you have 2 kids...