Your are forgetting the day care regulations though. A licensed baby sitter is limited regarding the number of children she can watch. Beyond that number she must hire someone to help her. Did you take that into account.
In my state, licensed day care providers must make hot lunches available. When as many as 30 students are involved the kitchen and health regulation are not trivial. Have you checked out the cost of a restaurant approved dishwasher lately? ( just wondering)
Then as the number of children increase the health, safety, and fire regulations become more onerous. Did you subtract out the expenses of renting a handicapped accessible space with that is equipped with all the needed disability, safety, and fire protections? I suggest that you check into the cost of plumbing and outfitting a wheel chair bathroom....and...don't forget that a wheelchair bathroom takes up *lots* of space on which you will pay rent for as long as you own the school.
Yes, I thought about that issue. But, it doesn't apply here. Your position was to pay "TEACHERS" wages that day care providers are paid, not to turn teachers into day care providers. Since there is no regulations regarding the number of students that a teacher has in a classroom, this is a non-issue with respect to this hypothetical.
As to the last part of your "questions", you seem to have failed to realize what you're asking. The original statement of yours was to pay individual teachers the wages that are paid to day care providers. Since that was the only issue raised, there was no need to go into the logistics of such issues as meal preparation (schools already have the equipment), ADA accessibility (schools already comply with ADA), fire protections (schools already have that built in to the facilities), etc, etc, etc. Again, this was not a question of making teachers leave their position in order to become simply a day care provider for children, but, as you indicated, changing the pay scale for teachers to match that of day care providers. You defined the operational rules in your original post.