For starters in the States, the secular education system drives people to iffy private schools like the one linked to earlier and to home education (which is a different beast in America than here).
The status quo here is imperfect and the admissions situation is insupportable, but I'm not at all sure that enforced secularisation is the way to go.
Countess makes a good point about multi-faith chaplaincies in universities. Maybe that's a happier medium?
I stumbled across this earlier, which sums up my feelings on nativity plays etc. I think she's an MNer actually.