couple of misconceptions about MHS here...
If I read correctly someone said MHS only lets you do Bio, Psych or Accounting 3/4 in yr 11. They do restrict us but not that much. You can do pretty much any subject except English, Maths or Chemistry/Physics. There may be a few more but I know you can do pretty much any commerce or humanities subject.
And MHS kind of allows uni extension, but you have to have done exceptionally well in yr 11 and jump through about 100000 hoops.
The whole reason for this is they feel they have the VCE formula right so that kids can be involved in co curricular whilst still getting a high ATAR (let's be honest, it works). The problem is they aren't flexible enough for those few exceptional people. I agree with you Rohit, for those students in Mathletes, I don't see the reason why they shouldn't be able to do methods.