I've long been out of the field
Speaking as someone that came out of high school a couple years ago and watched No Child Left Behind start taking effect, I've seen two different styles of test: one from the mid-90's, when it sounds like you were involved, and one from after No Child Left Behind. The NCLB tests today are utterly unlike the tests that your methods produced. Basically, instead of trying to rank students against each other, they began ranking every student against the same fixed hurdles. On top of that, they started testing once every year or two rather than once every four or five years, and question quality dropped precipitously as they just ran out of material. The changes were, to me, obvious, and the effects were disastrous. Null-value questions ("What shape is the end of a pencil? Cone, square, pyramid.", on a 7th-grade test), bad and wrong essays (as described in the OP), science questions that asked for rote memorization rather than actual understanding and thinking, and so on.
These observations, though amateur and unscientific, suggest a few solutions. Basically, go back to relative rankings, do a lot less testing, and start rewarding uniqueness. Teachers need to have time to actually teach outside hitting every checkbox on list for the end-of-the-year test. Teachers need to be able to teach to their own students, rather than to the lowest-common-denominator child in rural Alabama. Teachers need to be able to encourange and guide every student individually, developing artists, scientists, thinkers, and doers, rather than having to force every single child into the same standardized mold.
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