Offering special classes for gifted students can also help solve a lot of problems stemming from disparities in emotional and academic maturity, or offer instructors the chance to provide greater depth or branch out beyond the standard curriculum.
What about scrapping about 80% of the curriculum and returning to an apprentice system as a serious career path? Does teaching "item A" in the curriculum really matter if the resulting system still churns out 90% of its graduates who don't know or can't do A? What about really deeply integrating computers, in a way that isn't just "Keep doing what we're doing, but throw more computers at it?" What about any of these things but different for different children?
I don't really know what the answer is, but I observe that it simply can't be "keep doing what we're doing". The entire world has changed a lot in the past few decades and schools are starting to look distinctly 19th century. Not a typo. And I don't mean that the answer is "add lots of shiny technology" necessarily, but this factory mentality has got to go and I don't know that we can get there by incremental change.
"How far am I going to atomize the students?" Why, until they are what they actually are again: Individuals.
I may overuse it, but, well, I'm just very comfortable with that usage. Sometimes it's just what is called for.