A homeschool approach at school - school teaches by ability not grade

"Don't Fail Me: Education in America " examines the crisis in our public education system and why America's financial future is at risk if our students can't excel math and science.via www.cnn.com

"Every single student is getting an individualized education," said Hodgkins Principal Sarah Gould, who helped usher in the reform at her school two years ago. "We are giving our kids exactly what they need when they need it." 

Isn't this the same proposition that homeschooling parents make when they talk about why they homeschool?  Is this a game-changer, ultimately, as we look at the future of our education system?  An individualized education... make sense to me.  How about you?  Have you been frustrated by the one size fits all approach to educating your children?  How do you overcome that at home?