>Think about the things that are important to you. Perhaps you care about creativity, family relationships, your career, or having a sense of humour. Pick two or three of these values and write a few sentences about why they are important to you.
What has this got to do with physics and why are universities so interested in students' private lives?
Overall I would agree that free market bureaucracies are more efficient and better run than goverernment bureaucracies.
However, the fact that a bureaucracy is not run by the government does not mean that it knows what level of contribution individual employees are making.
Calculating such contributions is infeasible for all but the smallest groups (like startups, as PG has written about).
The people who are best at selecting good teachers are pupils. If classes were optional we would quickly find out which were worth attending by watching children vote with their feet.
However, children will never be allowed to do this in schools. A school that took children seriously and respected them as humans (or even just as customers), would quickly cease to resemble anything that we would recognise as a school.
Despite all this, education is in the process of being reformed. This is possible because reform is happening outside schools, for example in the unschooling movement.
What has this got to do with physics and why are universities so interested in students' private lives?