I like the concept overdog. Now, if students could opt out of High School and choose the online version it would be better than what it is now. the money that would go to the highschool would instead go to the online school. And that money could be used to improve the courseware. If people had a way to create courses and add them to the program, that would even be better. Like an opensource library with specific tools available for adding your own courses to the library.
And subjects like I.D.

could be selected as optional. omg is that going to get hammered. lol.
And let me guess, her solution is getting attacked because "the schools won't have enough money to stay running if everyone can just stay home and study at their own pace".
I once saw a televised symposium on home schooling where the pros and cons were discussed by professional educators. One lady stood up and asked, "Well, if everyone home schools, what will happen to the teachers?".
Your wife's solution will allow them to become mentors and at least transition to a different career. But I think the lady's question hit one of the problems right on the head: the schools are for the children, not the teachers. Too many people don't understand that.
Please pass on my compliments to your wife.