Yes, and not only the moral context. A school's job is to help turn little animals into citizens by introducing them to the broader world. How does shoving them in a box for 8 hours a day where they have to sit in one place make any sense if that's your goal.
For a fantastic critique of institutionalized schooling, check out Paul Goodman's Compulsory Mis-Education. http://www.amazon.com/Compulsory-Mis-Education-Community-Sch...