Programmers may routinely be judged by peers, but the entire team is then judged by results. A team that can't ship gets the axe or goes under. The closest counter-examples to this I can think of, doing government contracts, have also been some of the worst software shops that I've encountered.

So what's the analogous mechanism going to be? Are you ok closing entire schools if they have lower than average test scores in their class (whatever this means)? Otherwise, how do prevent the whole system from devolving into politics and cronyism?