2. The "formal way" as you put it is complex and unnecessary. It makes things harder, especially once you hit algebra. If you can't do simple two digit addition in your head by the time you start learning things that involve larger processes like inequalities and quadratic equations you WILL slow down and possibly become frustrated and lose confidence. If you want to get by in these subjects you have to start to depend on the calculator.
But guess what? Now you want to be a computer science major and all of the sudden you have to learn how to graph trig functions and find the instantaneous rate under a curve. Calculators can't help you now. In fact, everything you've just spent 4+ years cheating on must be fully understood at the manual level to even begin to grasp what you need to know now....
What you see in common core is not some magic a genius cabal created out of a Darwinian spite for the rest of mankind. It is an easier process that is used to create a much stronger foundation in mathematics. Nobody is telling kids to not know their multiplication tables, what they are saying is that there is an easier and quicker way to learn math.
That being said, I don't like monopolies and putting one on education is a dismal thing to do. With privatisation (real privatisation down to the accreditation level) you allow different things to be tried rather than one state staying, "This is how things will be done, hopefully we won't all be retarded in 20 years. If not, let's take credit and ignore that thing called the internet. If so, blame the current administration."
If enough people honestly believe "new math" (good song by Tom Lehrer) is the way to go, they can teach it to their kids. If people think what is proven to be better is... well... better, let them do it. When major differences appear in children from the same generation with one group knowing math and another not (like Asia vs. America), there'll be no complaining to do.