I think you underestimate the innovation in education considering Kahn Academy, the UN, MIT courseware online, etc. The innovation is in content and a more student-centric approach to learning.

The old model of a school building and a teacher "push the content" has changed little since 1800 despite the advances in technology. Just relax the assumption that there has to be a physical school and the innovation opportunities become apparent. More thoughts at http://sophisticatedfinance.typepad.com/sophisticated_financ...