I have been giving the subject quite a lot of thought.
It seems that in some areas cottage schools have sprung up to meet the need for more formalised learning, schools that are run by parents for the benefit of their children. For us it meets the need of DS1 to study maths to a higher level and take examinations. However it is not funded by the LEA or ofsted inspected.
I am not against ofsted inspections any more than I am suspicious of the NC. However it would completely alter the ethos of these schools. So rather than the school meeting the needs of its pupils and the parents that support it, it would be expected to comply with objectives set by ofsted. These schools would loose their purpose.
For some HE parents their objections to state schooling may be NC and they would prefer montessori or stiener, in which case free schools might cater for them.
I'm not sure the fault lays just with the NC, what about the years of highly politicised teacher training, constant changes in pedagogy, large class sizes, noise, chaos, loss of individuality and choice, the behavioural problems of children who can not cope in that environment and the constant monitoring of every aspect of that child's life, not just his academic ability.