James,
You have found the key problem in the situation -- governments are making standards that are out dated and relatively useless. It is true that basic skills are needed, but the tests fail to focus of those skills; instead, the focus on rote facts that are normally out of date. Students need to be able to locate resources, understand the value of the resources, and use the resources to create new products, but instead, they know that the U.S. Civil War was fought between 1861-65. It is nice that they know that, but why is it important? How did it change U.S. society? The deep knowledge is lost. With Web 2.0 tools, I believe students can engage other students, teachers, experts, and the world at large which will help them develop the connections that build meaning and learning. Let's not forget that testing is a billion dollar industry; we are the consumers, if we demand a better product, it will exist. But we must dare to demand.
I know of at least one school district that does one day a week totally online and students and teachers log in from wherever they are. Just in terms of not having to turn the lights on, heat the building the entire day, etc. there is money to save.