who is going to fund that? it's not just education its subsidized day care, and "it gets done when it gets done" is going to either result in a lot of 20 year old Seniors -- who are still on taxpayer funded schooling -- or else the bar gets lowered to push these kids through fast albeit at their own fast pace.
And how is your worst case scenario worse? Because the bar is already as low as it will go and instead of just leaving some behind we are actively holding a whole bunch back.
I could have graduated by 12 if they just let me go at the material, instead they had me drop out, in frustration at being forced to work at the pace of the stupidest and laziest, before returning to do exactly what I describe through an alternative education program which cost the system 5x as much per student as main track... and that without addressing that it would likely be cheaper due to fundamentally fewer teachers required per student as the teacher wouldn't be babysitting study hall like they are now but instead focused exclusively on the acts of teaching and grading.
I'm not sure I agree with your solution but I agree with he problem. No child left behind is idiotic. Some kids are just stupid, put them to work digging ditches or something. No point wasting a ton of manpower and stuff trying to teach them basic algebra, they'll never use it for anything anyway.