The school has a good reputation, so we'll pay money to send our kid there. Sounds like a rational choice to me.

(2) Even leaving aside (1), no, there's no reason to expect that; among the errors that appear to be implicated in that conclusion is confusing schools with teachers.

I suspect there is a granularity problem here. Discerning comics fans follow creators, not titles. Maybe the future of the education market will involve dis-intermediation and a more direct connection between students and teachers.

If they really believed that excessive central regulation was the problem, then rather then promoting charter schools exempt from the bureaucratic rules along with greater central accountability and regulation for traditional public schools, advocates would instead simply reduce central control and increase local (district and even site-level) control of traditional public schools.

This is a bit of a non-sequitur to me. "Promoting charter schools exempt from the bureaucratic rules" is a perfectly reasonable step.

along with greater central accountability and regulation for traditional public schools

If those schools are failing catastrophically, I don't see what's necessarily wrong with that. So long as there are some schools more independent of the central bureaucracy, there is more choice in the market. Again, your "logic" relies on false dichotomies and doesn't logically hold up.

They don't, because what they really want is a subsidy for private, for-profit entities

What if there was a more direct way to divert funds at the behest of the parent to private for-profit entities? There's a "subsidy" for public education. What's wrong with empowering parents to redirect those funds? It's beginning to seem like you're just restating the whole point of the proposed idea, just wording it so it sounds bad to you.

while engineering maximized paralysis in traditional public schools to drive an exodus to the subsidized private providers.

I many cases, the traditional public schools are already "paralyzed." The whole point is to enable an exodus to private providers, if the parents so choose. Would you support such initiatives if they didn't come with "engineering maximized paralysis in traditional public schools?" Why is a for-profit school necessarily bad?