> I think Milton Friedman's idea, was that parents would actually receive education 'vouchers' and be free to use them in whichever education context they chose for their children.

> This is slightly different, as the private/public system is wholly handled by the State system: parents simply choose between alternative schools, and the state channels taxpayer's money to whichever school the child attends.

I don't see the difference between those two situations. In your first sentence you talk about a “voucher”, but if it's a voucher, then there needs to be someone who emits the vouchers, and collect them in exchange for money, giving money back. And the “someone” is necessarily the state since it's financing the schools out of its own pocket.