Kids will find something, anything to embarrass and bully other kids for. I think it would be appropriate if people got made fun of for doing horribly, than for doing well.
The option of going to school is a right. When students make decisions that hinder other peoples education, they have chosen to give up their education. Why do we force them to stay in school? If the students don't care, the parents don't care, then why should the tax payers?
Grades should be publicly posted.
Each year after 5th grade the bottom 1% of the class is dropped.
Each year after 8th grade an additional bottom 2% is dropped.
This way, a 5th grade class with 100 students would graduate high-school with the top 85 students.
The bottom feeders would be given one chance to make it up every 3 years. Otherwise, you are out for good.
So if you fail 5th grade, and fill out forms to re-enroll, you need to redo 5th grade and pass every year through 8th.
Another option would be to put a time limit on highschool. 5 Years.
Give some meaning to a high-school diploma. Many schools promote students out of the school, even students who don't meet minimum the attendance requirements.