With regard to college, etc, this is the way I've always looked at it. I enroll in classes, and what I'm paying for is the grade: proof to future employers, graduate schools, or whatever that I completed the work or mastered the material in that course, etc. I've had some great lecturers in undergrad, graduate, and medical school, but the majority are garbage. I decided I could teach myself better on my own in many cases, so sometimes I'd stop going to class, show up on test days, and I did fine.
As an aside, courses that had mandatory attendance pissed me off for this reason: I'm getting nothing out of being there, but I'm required to be for the sake of some lame professor's ego. Mandatory attendance should be abolished and disallowed past high school.
Point is, if you can teach yourself chemical engineering, fine. But if you want to prove to somebody (an employer or another school or a pretty girl) that you've learned it, you're probably gonna need some accredited institution to back you up on that.
Anyway, I think there are a lot of other benefits to going to college, but I know it "isn't for everybody", as they say. But even if you hate it, it's hard to argue against toughing it out to make yourself more marketable and give yourself more opportunities in the future, as well as the personal enrichment and experiences you're bound to have.
I won't get started on grade school, because I agree there are a ton of problems with the current system here in the US. But I will ask what your alternative to standardized testing would be? I'm with you that they can be somewhat poor instruments for what they purport to measure, but look at it from the side of the admissions people trying to evaluate applicants. At some point, there have to be criteria they can use to start screening the huge numbers.
-J