Quite the contrary. Catholic schools still deliver a far bigger bang for the education buck than the public schools.
Catholic -- and all other private schools -- can "cherry pick." You got a kid with a severe or even moderate disability, then you best look someplace else. You got a kid with severe or even moderate emotional problems, then Catholic school isn't for you.
Yes. It seems that a majority of public school resources are going to help the "special needs" students in all their diversity, while the others are neglected. My daughter, who is independent, bright and well-behaved, deserves just as much attention as a student with a learning disability or a behavioral problem. She attends a Catholic school which has very strict standards of behavior.
This is why the issue of school choice is so critical: so that parents can match the school to their child's needs.