I also think we will have more drop outs.Students who are struggling will also drop out because they can't pass the WASL which is now necessary for graduation. The WASL has probably contributed to the narrowing of the subjects available that you mentioned, and of course, the young people are bored! I love your ideas!
How about classes organized by ability within certain age ranges? Then the students who find some subjects easy can be given more challenging work, while those who struggle with a subject are given more time to learn what they need to learn.