I'm not going to say much about this article. Primarily because everyone involved got exactly what was coming to them (with the slight exception of the children who were too young to have a say in the decision) and also because the last thing this story needs is to be blown out of proportion and attached to the progressive movement in education.
The main lesson to be taken from this story is as follows: if you're paying $32,000 a year to send your child to a school created by members of a Vegas entertainment group known for the ground-breaking idea to cover themselves from head to toe in blue paint... you shouldn't be surprised when your child fails to gain anything from their time spent there.
If you're paying all that money and your children's principals are trained in anything but education, and those school administrators don't believe in the importance of books and structured classroom time (don't jump to any conclusions, I'm simply stating that 6-7 hours of "play time!" is not good for anyone)... you shouldn't be surprised when they can't read.
As with everything in life these days, there exists a wide spectrum of ways to solve every problem. Just try to avoid the extremes. No one expects you to send your child to a school where they will spend 7 hours circling answers on a multiple-choice test. But don't associate the Blue School or any of its like to a progressive education. We believe in books... that should say enough for itself, right?