Of course it needs a major revamp, it's needed one for a while. As for creativity, it stifles it. The public system has no room for creativity, how can it when it's mostly come down to teachers passing students so that they don't get fired? Curriculum's are becoming more streamlined, with less emphasis on the individual. It's a collective problem where students are being fit to a mold and sent off to college, work, or the army, as opposed to the mold being fit to them.
Going in that direction a little more, how do we change what seems a world wide view of the education that places the hard sciences at the top, then the humanities, and then the arts. How does the world incorporate an artist as it would a scientist? This isn't to make the professions necessarily equal (that's a different discussion), but to encourage (or even mandate) participation in the arts is necessary for a more culturally literate and successful education system.