If the kids cannot do basic arithmetic without a calculator (or in some cases with it), then all the algebra in the world will not help them. They will be hopelessly lost and will lose interest in math, rightfully considering it beyond their capabilities. This in turn will cause a lowering of the standards again, which will in turn cause another round of math education 'reform'. Grades 1-5 should be a repititious round of basic arithmetic, using pencil, paper and brain only. After that, when the foundation is there, advanced concepts can be taught to a more receptive audience.
I'm good at math and I agree with you.
My son is in the 5th grade, and I have been very happy that his school does not let them use calculators. He needs to get the basics down.
If he starts to use a calculator in the following years, then I won't mind. He already knows the basics behind what he's doing.