'My frame of referenc spans further than a measly 2000 years and from a wider range of sources, occasionally contradictory, often flawed, but I'm always learning and rely on MYSELF to draw conclusions. I'm a grown up human being with the ability to think, observe and decide for myself.'
Are you saying that the Catholic Church demands blind, unthinking loyalty, that believers check their thinking faculties at the door of the church? You have referred to a God who 'demands' worship, and above you seem to draw a contrast between the way you arrive at moral conclusions and an implied other way that the Catholic Church insists upon.
Apart altogether from the fact that this is part of an old prejudice against Catholics and the Catholic Church, that Catholics are a bunch of brain-dead fools being led gladly by the nose, completely under the sway of some puppeteer in Rome, ready to jump up and commit treasonable acts whenever the Pope snaps his fingers, the Catholic Church has always posited free will as one of the defining characteristics of human beings (unlike Luther, who greatly downplayed the role of free will). Hence the role of the human intellect in discerning one's own morality (albeit with the guidance of the Church in its role as teacher), and the Catholic Church teaching responsibility for one's own conduct and the availability of grace through the sacraments.
Classical philosophers have wrestled with the idea of free will, with perhaps Socrates coming closest to the Catholic idea of free will the rational being is always attracted to what is apprehended as good, the rational being is able to distinguish between right and wrong, and will do so whether consciously or unconsciously. If you do not have some construct of right and wrong, why do you choose to live the way you do? (this is FBM's question) How do you arrive at daily decisions general taboos such as incest aside, what's stopping you from shoplifting if you could get away with it, having sex with the postman while in a committed relationship with someone else if no-one would ever find out, spray-painting swastikas on other people's houses... What constitutes a psychological taboo in place of the notions of right and wrong?
I have to say, I would personally object to having any non-Catholic teach my DCs anything about Catholicism; I am against teaching 'RE' as just another school subject like Reading or Spelling. It means more than that to those who practice it -- it's not just some interesting, quirky anthropological phenomenon. When you 'teach' it as an element of society that children should be aware of because religion in general has influenced the history and the law of the land, you negate the essence of religion as something living and important and concerned with the spirit. Why not just teach history properly? OTOH, teaching RE as Truth to children whose parents and families do not see it that way is not fair to those families. It interferes with their right to bring up their children as they see fit. Exposing children to any religious experience without the enthusiastic consent of the parents is intrusive. There is no way to teach RE without falling short, in other words, and I don't think excluding your child from the praying part is a good solution for the children concerned.
Seeker, in the US, individual school districts get to decide what will be taught in the public schools in their districts. Districts usually coincide with municipal areas, or counties in rural areas. States have no say in what is taught in individual public schools. The religious right has to fight its battle one school district at a time; so far there have been only patchy victories and lots of resistance from the rational majority. Secular public schools are safe there for the moment.
The separation of church and state is considered to be one of the cornerstones of US 'freedom', especially by the Catholic Church, which gets to run its own schools and hospitals and social service agencies, all funded by Catholics and run without interference from a government bureaucracy that was historically rather anti-Catholic.