This post just shows you have no idea what school is supposed to be about. I don't blame you personally for this, the school system has been doing a poor job of it for decades now, but throwing out the entire thing is just as wrong as keeping it as is.
Your first point is mostly there. The real problem is that the schools have been experimenting with different teaching methods for decades now, but lack the staff / time / funding / classrooms / etc. to deal with those that the current method can't help or provide for. Those kids get classed as special needs mainly to try and get them to another room with a different method being used to see if that works. Or, they do it to get additional resources allocated for said student in a desperate attempt to avoid the federal funding penalties for too many failures. Both of these are legislatively driven issues, and solving them requires the political will to do so. It hasn't happened because no politician wants to go on record as being the one that increased school funding, or mandated that students that fail get held back until they are able to pass. Regardless of their parents' mental breakdowns over it.
The second point about competency is also correct. See paragraph above. That being said, memorization can help in other areas. I.e. Knowing your times tables is faster than having to divide a number completely, and knowing a process in general is faster than having to ask ChatGPT to describe each step in detail like you're five years old. So memorization has a place in education, but it's not the end all be all that many in the school system (and outside of it) would make it out to be.
The third point is just wrong. Open book means nothing. I've been in plenty of classrooms both as a student and as a staff member, and open book doesn't mean everyone gets an A. If anything, it just means you used the resources available to you in the moment, but the use of an open book during the test is a mulligan and should never be accepted as having met the standard expected of the course. Education isn't just about asking a question and getting an answer, it's also about being able to come up with the answer on your own based on your own knowledge and experience in a vacuum. External help such as an open book, calculator, or the modern equivalent: ChatGPT isn't your knowledge and experience, it's someone else's. If you're an employer, you want to hire the original source, not some clueless idiot who's only able to find and regurgitate the prewritten solutions of others.
As for the fourth point, it's also wrong. Grades are supposed to be adversarial. The point is to encourage the students to compare notes on their own time (to help each other succeed as a whole) and compete with each other (as an individual). Which is what the corporate / working world expects of them. To do that you need agreed upon standards, and proper measurements of progress toward those standards that can be compared to others. (As many as possible.) The real problem is that Americans have gotten so used to coddling that the grades they get are no longer allowed to be adversarial in the first place. Which makes them meaningless, and unable to provide the training that they were designed for. The solution to that isn't "keep trying until you pass", it's allow the grades to do their job so that you don't spend endless amounts of time rehashing the same shit you've already mastered trying to find the one or two things you're still a novice on. That takes time and money, but such is the real cost of investment in the future.