gdfsnob
Regarding Seattle, you're citing one data point. The majority of American public schools don't operate with open enrollment. If you're in a public school, you're assigned to one school in a designated area, and can't choose a different school.
"Go to Watts and check out the selection and quality of food in supermarkets."
This is just completely false and dishonest. There are a handful of Walmarts and Targets around Watts and the majority of other low-income neighborhoods -- all within a 5-minute drive.
http://maps.google.com/maps?q=watts,+california,+walmart&...
You state that CATO is "purely political propaganda" without substantiating that claim with any specifics whatsoever. Where is your data?
American public schools, with few exceptions, don't compete with each other for resources and students. Therefore, it's a form of monopoly. For instance, an American student within a designated area can only attend a certain public school. Geographically-disadvantaged residents can still choose supermarkets outside their areas if they find more utility doing so (or a competitor can start up their own supermarket and take market share from the lazy incumbent), so supermarkets do exist in a competitive market. Public school students rarely have the option to choose new suppliers.
Sorry, but you dismiss Cato because of its "free-market spin" and then call its main thesis "questionable", when 10 Nobel Laureates, who probably know far more than us on economic issues, are associated with Cato. I'd also note that Paul Krugman, Delong, and Sachs -- all very prominent Democratic supporters -- are very pro free market as indicated on the links you'll find on their Wikipedia pages.
As if Hacker News is somehow more qualified on economic issues than Cato, which has 10 Nobel Laureates?
F. A. Hayek
Milton Friedman
James M. Buchanan
Robert Mundell
Edward C. Prescott
Douglass C. North
Vernon L. Smith
Gary S. Becker
Ronald Coase
Thomas C. Schelling