I don't exactly see how that's similar; no one is complaining that their school district is lousy because it's overregulated, they're complaining that it's mismanaged or corrupt and that without something like vouchers, only the wealthy can opt out, and poorer kids get trapped.

Ultimately I think pure free-market school choice in practice would fail not so much because of regulatory capture or a cash-grab, but because changing schools is disruptive and won't fix the problems of students with dysfunctional home lives.