Do you really think that it is NOT bad for a society to demoralize and demotivate the people who might otherwise be very productive knowledge workers? There are arguably two goals to the public education system: giving a minimum education to everyone and raising up lower class folks who can't otherwise afford an education. It sounds like you only want the first one.
Considering how many of todays highly effective knowledge workers where demoralized and demotivated in public school, you are talking about a short term effect. Personally I and many people at know greatly befitted from an easy public school education that enabled me plenty of free time to dive extremely deep into various personal projects. In comparison I took plenty of difficult electives in collage like Differential Equations for the fun of it, but thinking back I would have been better served with more free time.
I still remember coming up with the equivalent of the Bit Torrent algorithm in collage before BT was a thing, and thinking I just don’t have time to build it. In the wider context not a big deal, but don’t assume you can simply ramp things up without any cost.
