I live in Germany, and where I live (at least locally, I don't know if it is national policy) like the OP, all children have a place at their local school, determined by their address.
But we are very lucky that our local school is a friendly, inclusive place that I am happy for my DC to go to. (I don't know about the academic standard.)
I don't know if there are league tables, or an equivalent of Ofsted reports here. I don't know what you can do if you end up with a school or teacher that doesn't fit your child. Presumably you just have to suck it up.
And it's a system that can only work if there is actually space for everyone at their local school. Our school is normally 2 form entry, but DS is in a big year - they split them up into extra class, and brought in an extra teacher, and fortunately, they had a spare classroom to house them too.
I don't know what they would do if they had lots of extra students, and no room for them - the sort of thing that is likely to happen in a big city. Employing more teachers is great, but you still have to physically fit everyone into the building.
I suppose the only answer is to build more schools in the places where there are shortages. And that's hardly a simple thing to do.
But you need enough places for everyone first, before you can start any ideological overhaul of the system.