kingpomba (:3, for those unaware of the namechange), I fundamentally disagree with you that good students should be held in the mire.
You write that you want them to be held in those underperforming schools because it's "unfair" to the other students.
What is more unfair is thoroughly disadvantaging those students who would perform well in a better environment. For most people at those schools, they're already lost. They've already had a decade of societal disenfranchisement and it's game over.
As everyone else has pointed out, and as I wrote in my post (perhaps you missed it). The key to fixing those schools is not funding or better teachers. It's a generational attitude shift from the community surrounding the school. We are not going to achieve that in the short term. So while you most certainly correctly identify the selective schools as a band-aid solution, I view it more as a stopgap solution.
Until the communities are fixed, there is no need to keep bright students in schools which will prevent them from realising their potential.
Not to mention that if everybody went to university, who would perform labour tasks? Some people really just do not want to study. They should be identified and given vocational training, as VCAL already attempts to do. Who are we to judge and say that that life is inferior? So long as they're happy, we should support them in their endeavours. I'm very thankful for those who take on the physical tasks of society. I know that my pasty white ass isn't cut out for it.
I think a separated system is the best. Not tiered, simply differently purposed. It's up to your value judgment whether you think academia or vocational training is superior. But that's a personal choice that you make.
I totally agree with Enwiabe. It is wrong to hold back students who have potential. If a student has the potential to perform really well in a selective school, then it is our responsibility to give them the opportunity to take advantage of it. As Enwiabe said, there needs to be a HUGE fix in these communities before students are able to reach their potential there, and it will take a LONG TIME!
A problem that hasn't been considered though, is "what about middle performing students at these schools?". These are the students who aren't exactly geniuses, but they still have potential to do well with some guidance. Will this split leave them not being able to reach their potential? I consider myself to be a middle performing student, and it was only through the guidance of great teachers, that I was able to get where I am now.
I have been tutoring for two years now, and the students who are struggling the most, are those who are being taught by young teachers. For some reason it seems that teachers who are in their late 30's - 40's are much better than those who have just graduated from a DipEd. Is the standard of teaching dropping? Are our teachers not as intelligent now, than they were? Our education system needs a HUGE overhaul. If more perks (by this I mean: At least a middle income salary, more resources to educate with, performance reviews and bonuses for those who are great teachers, and to know that teachers are actually respected in Australia) were given with teaching, we would have more able people entering the teaching profession instead of medicine or law. I'm not joking either, I've spoken to fellow masters students (I went over the 2011 specialist maths exams, and realised I would love to teach specialist maths) who said it would be a waste to become a teacher.
I would just like to add: older teachers are obviously going to be better, since they have more experience, but it still seems as though the standard of teaching is dropping.