I think the state of education is yet another reflection of the general attitude of our society. We used to be a country where people lived by the motto that people rise to the level of expectations. Then some geniuses got into the mindset that we need to lower expectations so everybody can "feel good".
Over time, this attitude of lowering expectations has created a culture of laziness and unaccountability.
There are those individuals who still believe in the "rise to the level" principle, but it's getting ever harder to implement due to all the government rules to the contrary.
In education, students get lazy because either there are no consequences for not putting forth effort, are not being adequately challenged to keep their interest, or their teachers have given up after being beaten down by a system that doesn't let them "teach" anymore.
When I took physics in high school back in the late 80's, the book was out dated, but the science was sound. A decade after I graduated I saw the "new and improved" physics books where the lesson to learn about force called "torque" was that it rhymed with fork...no kidding. That was it - no equations, no science - just how to pronounce the word?!? How is a teacher supposed to "teach" when they are limited to using such substandard teaching tools. And when you try to actually teach something, you are reprimanded because if you demand students learn "too difficult" a concept, they may develop negative "self-image issues".
I've seen this same attitude in the work place these days. I'm always marveled how my work is constantly marked as being an "over-achiever" when as far as I can see I'm simply doing my job. Meaning people who don't finish their assignments on time (or at all) are now considered "average". I even had a manager tell me I shouldn't expect the people who worked under me to work at my level (which is simply doing my job). I couldn't believe that!
Maybe we need to collectively start demanding people in society take responsibility for their actions and expect more of people again. Humans desire challenge and need something to strive for to keep interested and moving forward. I feel we've lost that somewhere along the way, where other countries still expect that of their younger generations which is why "we" keep falling behind and "they" keep outshining us.